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Business, 05.05.2020 06:12 19thomasar

Xia Co. currently buys a component part for $10 per unit. Xia believes that making the part would require $7.25 per unit of direct materials and $1.20 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 235% of direct labor cost. Xia estimates an incremental overhead rate of $0.55 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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