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Haver Company currently pays an outside supplier $23 per unit for a part for one of its products. Haver is considering two alternative methods of
Haver Company currently pays an outside supplier $23 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the pat would require direct materials of $9 per unit, direct labor of $12 per unit, and incremental ovemead of $3 per unit. Method 2 for making the part would requite direct materiais of $9 per unit, direct labor of $6 pet Wit, and incrementa overhead of $7 per unit. Required: 1. Compute the cost per unit for each aternative method of making the part. 2. Should Haver make or buy the part? If Haver makes the part, which production mechod should it use? Complete this question by entering your answers in the tabs below. Compute the cost ger unit for wach alternative method of making the part. Haver Company currentiy pays an outside supplier $23 per unit for a part for one of its products. Haveris considering two aiternative methods of making the par Method 1 for making the pan would require direct materiais of $9 per unit, direct labor of $12 per unit, and incremental overnead of $3 per unit. Method 2 for making the part would require direct marerials of $9 per unit, direct labor of $6 per unit, and incrementai overnead of $7 per unit. Requlred: 1. Compute the cost per unit for each alternative method of making the part 2. Should Haver make or buy the part? If Haver makes the part, which producton method should it use? Complete this question by entering your answers in the tabs below. Should Haverimake or buy the part? If Hover makes the part which production method should it use
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