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Factor Company estimates that producing a unit of product would require $7.00 per unit of direct materials and $23.00 per unit of direct labor. Factor
Factor Company estimates that producing a unit of product would require $7.00 per unit of direct materials and $23.00 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 $12.25 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $40.25 per unit. Factor Company should choose to: Multiple Choice Make since the relevant cost to make it is $30.00. Make since the relevant cost to make it is $42.25. Buy since the relevant cost to make it is $30.00. Buy since the relevant cost to make it is $52.75. Buy since the relevant cost to make it is $42.25
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