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Factor Company estimates that producing a unit of product would require $8.60 per unit of direct materials and $24.60 per unit of direct labor.
Factor Company estimates that producing a unit of product would require $8.60 per unit of direct materials and $24.60 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $17.20 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $48.40 per unit. Factor Company should choose to: Multiple Choice Buy since the relevant cost to make it is $59.00. Make since the relevant cost to make it is $50.40. Buy since the relevant cost to make it is $50.40. O. Make since the relevant cost to make it is $33.20. Buy since the relevant cost to make it is $33.20.
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