Maya Company currently buys a component part for $8 per unit. Maya estimates that making the part would require $4.25 per unit of direct materials and $1.15 per unit of direct labor. Maya normally applies overhead using a predetermined overhead rate of 215% of direct labor cost. Maya estimates incremental overhead of $0.60 per unit to make the part.

(a) Prepare a make or buy analysis of costs for this part.

(b) Should Maya make or buy the part?

Required A Required B Prepare a make or buy analysis of costs for this part. Note: Round your answers to 2 decimal places. Make Buy Direct materials 4.25 Direct labor 1.15 Overhead 3.07 X Cost to buy 8.00 Cost per unit 8.47 X 8.00