Xia Co. currently buys a componet part for $9 per unit. Xia belives that making the part would require $6.40 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 245% of direct labor cost. Xia estimates and incremental overhead rate of $0.55 per unit to make the part.

1-a: What are the relevant costs for Xia to make or buy the part?

1-b: Should Xia make or buy the part?

Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would require $6.40 per unit of direct materials and $105 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 245% of direct labor cost. Xia estimates an incremental overhead rate of $0.55 per unit to make the part 1-a. What are the relevant costs for Xio to make or buy the part? 1-b. Should Xia make or buy the part? Complete this question by entering your answers in the tabs below. Required IA Required 18 What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Per Unit Make Buy Red 1 Required 18 > Xia Co. currently buys a component part for $9 per unit Xla believes that making the part would require $6.40 per unit of direct materials and $105 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 245% of direct labor cost. Xia estimates an incremental overhead rate of $0.55 per unit to make the part. 1-a. What are the relevant costs for Xla to make or buy the part? 1-b. Should Xia make or buy the part? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Should Xia make or buy the part? Should Xia make or buy the part?