Pnok Company has been purchasing a component, Part Q, for $18.90 a unit. Pnok is currently operating
Question:
Direct materials $11.25
Direct labor 4.50
Variable factory overhead 1.12
Fixed factory overhead 3.15
Total $20.02
Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q.
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