eBook Make-or-Buy Decision Show Me How Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently ope below full capacity, charges factory overhead to production at the rate of 37% of direct labor cost. The unit costs to produce comparable carrying cases are expecte as follows: Direct materials Direct labor $30.00 20.00 Factory overhead (37% of direct labor) 7.40 Total cost per unit $57.40 If Pizana 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 15% of the direct labor costs. a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter "0". Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Carrying Case Line Item Description Unit costs: Purchase price Direct materials Direct labor Variable factory overhead Fixed factory overhead Total unit costs May 31 Make Carrying Case Buy Carrying Case Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) QQ Check My Work Email Instructor Save and Exit Previous Next > Submit Assignment for Grading