Current Attempt in Progress Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity and variable manufacturing overhead is charged to production at the rate of 69% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 25,400 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.20 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,000 of foxed manufacturing overhead currently being charged to the finials will have to be absorbed by other products (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Direct materials Direct labor Varlable overhead costs Fixed manufacturing costs Purchase price Total annual cost (b) Should Pottery Ranch buy the finials? Make Pottery Ranch should the finials. Buy Net Income Increase (Decrease) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number es-45 or parentheses eg. (45)) Direct materials Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost Should Pottery Ranch buy the finials? Make Pottery Ranch should V the finials. $ Buy Net Income Increase (Decrease) Would your answer be different in (b) if the productive capacity released by not making the finials yld be used to produce income of $24,650? income would by $ eTextbook and Media Attempts of used