Business, 16.04.2021 02:10, tedrayoung1

Xia Co. currently buys a component part for $8 per unit. Xia believes that making the part would require $4.35 per unit of direct materials and $1.00 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 205% of direct labor cost. Xia estimates an incremental overhead rate of $0.65 per unit to make the part. 1-a. What are the relevant costs for Xia to make or buy the part

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Xia Co. currently buys a component part for $8 per unit. Xia believes that making the part would req...