\f2 Exercise 23-1 (Algo) Make or buy LO P1 1.2 Beto Company pays $4.30 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is points considering making the part. Making the part would cost $3.90 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. eBook (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? Hint (a) Make or Buy Analysis Make Buy Direct materials Direct labor Ask Overhead Cost to buy Cost per unit Print Cost difference References (b) Company should:Exercise 23-3 (Algo) Sell or process LO P2 1.2 Cobe Company has manufactured 235 partially finished cabinets at a cost of $58,750. These can be sold as is for $70,500. Instead, points the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $14,100, and the finished cabinets could be sold for $94,000. (a) Prepare a sell as is or process further analysis of income effects. eBook (b) Should the cabinets be sold as is or processed further and then sold? (a) Sell or Process Analysis Sell As Is Process Further Hint Revenue Costs Income Ask Incremental income (loss) to process further Print (b) The company should: References