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Maya Company currently buys a component part for $6 per unit. Maya estimates that making...

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Accounting

Maya Company currently buys a component part for $6 per unit. Maya estimates that making the part would require $1.40 per unit of direct materials and $1.05 per unit of direct labor. Maya normally applies overhead using a predetermined overhead rate of 205% of direct labor cost. Maya estimates incremental overhead of $0.55 per unit to make the part.
(a) Prepare a make or buy analysis of costs for this part.
(b) Should Maya make or buy the part?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare a make or buy analysis of costs for this part. (Round your answers to 2 decimal places.)
\table[[,Make,Buy],[Direct materials,,],[Direct labor,,],[Overhead,,],[Cost to buy,,],[Cost per unit,,]]
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