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can anyone help me solve this idk if its right or wrong! please please im running out of time!!! ASAP Snipe Company has been purchasing
can anyone help me solve this idk if its right or wrong! please please im running out of time!!! ASAP
Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currently operating at 70% of capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q is estimated as follows: Direct materials $11.50 Direct labor 4,50 Variable factory overhead 1.12 Fixed factory overhead 3.15 Total $20.27 Prepare a differential analysis report dated March 12 of the current year. Round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Make (Alternative 1) or Buy (Alternative 2) Part Q March 12 Make Buy Part Q Differential Effects Part Q (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: 0 1.12 3.15 Direct labor Direct materials Purchase price of part Variable factory overhead 10 0 3.15 00001 Differential Analysis Make (Alternative 1) or Buy (Alternative 2) Part Q March 12 Make Buy Differential Part Q Part Q Effects (Alternative 1) (Alternative 2) (Alternative 2) Direct labor Direct materials 0 Purchase price of part 1.12 0 Variable factory overhead 3.15 0 Purchase price of part 0.00 20.27 -2.08 Total unit costs Should the company make or buy the component? The company should make the component. Unit costs: 3.15 19.20 22.35 Step by Step Solution
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