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Companion Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of 656 per unit. The company, which is currently

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Companion Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of 656 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 45% of direct labor cost. The fly absorbed it costs to produce comparable carrying cases are expected to be as follows: Direct materials $26.00 Direct labor 10.00 Factory overhead (45% of direct labor) 0.10 Total cost per unit $52.10 if companion Technologies 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 16% of the direct labor costs it represents a netcost savings; enter a negative amount if a. Prepare a differential analysis report for the make-or-buy decision. Enter your final answer as a positive amount it represents an increase in cost. COMPANION TECHNOLOGIES COMPANY Manufacture Carrying Case Differential Analysis Report Purchase price of carrying case Differential cost to manufacture carrying case: Direct materials Director Variable factory overheid b. On the basis of the data presented, would it be advisable to make the carrying cases or to continue buying them? It would be advisable the carrying cases because the would be s per unit. Fixed factory overhead is

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