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Factor Company estimates that producing a unit of product would require $9.00 per unit of direct materials and $25.00 per unit of direct labor. Factor
Factor Company estimates that producing a unit of product would require $9.00 per unit of direct materials and $25.00 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 $13.50 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $45.50 per unit. Factor Company should choose to: Multiple Choice Buy since the relevant cost to make it is $65.50. Make since the relevant cost to make it is $47.50. Buy since the relevant cost to make it is $47.50. Make since the relevant cost to make it is $34.00. O Buy since the relevant cost to make it is $34.00
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