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Factor Company estimates that producing a unit of product would require $9.00 per unit of...

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Accounting

Factor Company estimates that producing a unit of product would require $9.00 per unit of direct materials and $25.00 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $13.50 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $45.50 per unit. Factor Company should choose to:

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Factor Company estimates that producing a unit of product would require $9.00 per unit of direct materials and $25.00 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $13.50 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $45.50 per unit. Factor Company should choose to: Mustile Chaice Bury since the relevant cost to make in $3400 Make since the relevant cost to make it is $47.50. Ovy since the resevant cost to make it is 54750 . Make since the relevant cost to make it n$3400 Buyr since the redevarit cost to make it as $6550

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