Business, 18.12.2019 17:31 Tetto

Xia co. currently buys a component part for $10 per unit. xia believes that making the part would require $7.20 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 an incremental overhead rate of $0.75 per unit to make the part.
what are the relevant costs for xia to make or buy the part? (round your answers to 2 decimal places.) should xia make or buy the part?

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Xia co. currently buys a component part for $10 per unit. xia believes that making the part would re...

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