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QS 2 3 - 5 ( Algo ) Make or buy LO P 1 Kando Company currently pays $ 1 7 per unit to buy

QS 23-5(Algo) Make or buy LO P1
Kando Company currently pays $17 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $7 for direct materials, $5 for direct labor, and $2 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost.
(a) Prepare a make or buy analysis of costs for this part.
(b) Should Kando make or buy the part?

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