FCC Company currently pays $162 per unit to buy a part for a product it...
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Accounting
FCC Company currently pays $162 per unit to buy a part for a product it manufactures. Instead, FCC could make the part for per unit costs of $60 for direct materials, $40 for direct labor, and $20 for incremental overhead. FCC normally applies overhead costs using a predetermined rate of 163% of direct labor cost. What is the incremental cost or savings to buy a part rather than making it (incremental amount should be positive if it is a savings to buy and it is negative if it is an additional cost to buy)
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