3.28 Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 46% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $27 Direct labor Factory overhead (45% of direct labor) Total cost per unit $53.28 If Somerset Computer Company manufactures the carrying cases, twed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 14% of the direct labor costs a. Prepare a differential analysis dated April 30 to determine whether the company ahould mace (Alternative 1) or buy (Alternative 2) the carrying case. It required, round your answers to two decimal places. If an amounts ro, enter Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt 2) April 30 Make Duy Carrying Carrying Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Unit co Purchase price Direct materiais Case Case direct labo Variable factory overhead Food factory overead Total unit costa Factory overhead (46% of direct labor) 8.28 Total cost per unit $53.28 1f Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 14% of the direct labor costs a. Prepare a differential analysis dated April 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If required, round your answers to two decimal places. If an amount is zero, entero Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) April 30 BUY Make Carrying Carrying Case Case (Alternative 1) (Alternative 2) Differential Effects (Alternative) Unit costs Purchase price Direct materials Direct lobor Variable factory overhead Fixed factory overhead Total unit costs to manufacture the carrying cases. Fored factory overhead is b. Assuming there were no better alternative uses for the spare capacity, it would to this decision