Davis Company currently buys a component part for $6 80 per unit. Davis estimates that making the part would require $5.

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Davis Company Currently Buys A Component Part For 6 80 Per Unit Davis Estimates That Making The Part Would Require 5 1 (14.03 KiB) Viewed 37 times

Davis Company currently buys a component part for $6 80 per unit. Davis estimates that making the part would require $5.30 per unit of direct materials and $2.80 per unit of direct labor Davis normally applies overhead using a predetermined overhead rate of 125% of direct labor cost. Dovis estimates incremental overhead of $2.30 per unit to make the part. The net incremental cost or savings of making the component i Muple Chorce O $260 sans per un 13.60 per un $4.50 sings perunt $4.50 coat per ant $1.40 st per un