Xia Co. currently buys a component part for $9 per unit. Xia belleves that making...
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Accounting
Xia Co. currently buys a component part for $9 per unit. Xia belleves that making the part would require $4.45 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 220% of direct labor cost. Xia estimates an incremental overhead rate of $0.50 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? Make Buy
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