Business, 03.11.2020 16:20 ovengel12

Xia Co. currently buys a component part for $5 per unit. Xia believes that making the part would require $2.25 per unit of direct materials and $1.00 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 200% of direct labor cost. Xia estimates an incremental overhead rate of $0.75 per unit to make the part. 1-a. What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) 1-b. Should Xia make or buy the part?

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Xia Co. currently buys a component part for $5 per unit. Xia believes that making the part would req...

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