Exercise 25-2 (Algo) Make or buy LO P1 Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.75 for direct materials and $1.30 for direct labor. Incremental overhead to make this part is $1.62 per unit. The company can buy the part for $4.93 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: 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

Exercise 25-2 (Algo) Make or buy LO P1 Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.75 for direct materials and $1.30 for direct labor. Incremental overhead to make this part is $1.62 per unit. The company can buy the part for $4.93 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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