Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.70 for direct materials and $1.25 for direct labor. Incremental overhead to make this part is $1.60 per unit. The company can buy the part for $4.80 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Make Buy Cost difference (b) Company should:

Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.70 for direct materials and $1.25 for direct labor. Incremental overhead to make this part is $1.60 per unit. The company can buy the part for $4.80 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Make Buy Cost difference (b) Company should:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Please help me with show all calculation thanku