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Beto Company pays $2.70 per unit to buy a part for one of the products...

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Accounting

Beto Company pays $2.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $1.50 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost.
(a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.)
(b) Should Beto make or buy the part?
\table[[(a) Make or Buy Analysis,Make,Buy],[Direct materials,,],[Direct labor,,],[Overhead,,],[Cost to buy,,],[Cost per unit,,],[,,],[Cost difference,,],[,,],[(b) Company should:,,]]
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