Answer Happy

Haver Company currently pays an outside supplier $53 per unit
for a part for one of its products. Haver is considering two
alternative methods of making the part. Method 1 for making the
part would require direct materials of $24 per unit, direct labor
of $27 per unit, and incremental overhead of $3 per unit. Method 2
for making the part would require direct materials of $24 per unit,
direct labor of $21 per unit, and incremental overhead of $7 per
unit.

Required:
1. Compute the cost per unit for each
alternative method of making the part.
2. Should Haver make or buy the part? If
Haver makes the part, which production method should it use?