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FCC Company currently pays $154 per unit to buy a part for a product it manufactures. Instead, FCC could make the part for per unit
FCC Company currently pays $154 per unit to buy a part for a product it manufactures. Instead, FCC could make the part for per unit costs of $60 for direct materials, $40 for direct labor, and $20 for incremental overhead. FCC normally applies overhead costs using a predetermined rate of 169% of direct labor cost. What is the cost to buy one part?
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