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Factor Company estimates that producing a unit of product would require $7.10 per unit of direct materials and $23.10 per unit of direct labor. Factor
Factor Company estimates that producing a unit of product would require $7.10 per unit of direct materials and $23.10 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 $10.65 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $38,85 per unit. Factor Company should choose to: Multiple Choice Buy since the relevant cost to make it is $55.05. Make since the relevant cost to make it is $40.85. Buy since the relevant cost to make it is $40.85. Make since the relevant cost to make it is $30.20
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