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QS 23-6 (Algo) Make or buy LO P1 Maya Company currently buys a component part for $8 per unit. Maya estimates that making the
QS 23-6 (Algo) Make or buy LO P1 Maya Company currently buys a component part for $8 per unit. Maya estimates that making the part would require $4.30 per unit of direct materials and $1.05 per unit of direct labor. Maya normally applies overhead using a predetermined overhead rate of 245% of direct labor cost. Maya estimates incremental overhead of $0.65 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. Required A Required B Prepare a make or buy analysis of costs for this part. (Round your answers to 2 decimal places.) Make Buy Direct materials Direct labor Overhead Cost to buy Cost per unit < Required A Required B >
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