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Maya Company currently buys a component part for $9 per unit. Maya estimates that making the part would require $4.20 per unit of direct materials
Maya Company currently buys a component part for $9 per unit. Maya estimates that making the part would require $4.20 per unit of direct materials and $1.20 per unit of direct labor. Maya normally applies overhead using a predetermined overhead rate of 250% 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? Complete this question by entering your answers in the tabs below. Prepare a make or buy analysis of costs for this part. (Round your answers to 2 decimal places.)
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