Xla Co. currently buys a component part for $5 per unit. Xla belleves that making...
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Accounting
Xla Co. currently buys a component part for $5 per unit. Xla belleves that making the part would require $1.40 per unit of direct materials and $1.10 per unit of direct labor. Xla allocates overhead using a predetermined overhead rate of 240% 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 Xla to make or buy the part? (Round your answers to 2 decimal places.) 1-b. Should Xla make or buy the part? Make Buy
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