eBook Show Me HowPrint Item Question Content Area Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $55 per unit. The company, which is currently operating 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 expected to be as follows: Direct materials $27 Direct labor 18 Factory overhead (37% of direct labor) 6.66 Total cost per unit $51.66 If 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 15% of the direct labor costs. Question Content Area 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, enter "0". Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) April 30 Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price $fill in the blank c6f59d04bfb200a_1 0 $fill in the blank c6f59d04bfb200a_2 $fill in the blank c6f59d04bfb200a_3 Direct materials fill in the blank c6f59d04bfb200a_4 fill in the blank c6f59d04bfb200a_5 fill in the blank c6f59d04bfb200a_6 Direct labor fill in the blank c6f59d04bfb200a_7 fill in the blank c6f59d04bfb200a_8 fill in the blank c6f59d04bfb200a_9 Variable factory overhead fill in the blank c6f59d04bfb200a_10 fill in the blank c6f59d04bfb200a_11 fill in the blank c6f59d04bfb200a_12 Fixed factory overhead fill in the blank c6f59d04bfb200a_13 fill in the blank c6f59d04bfb200a_14 fill in the blank c6f59d04bfb200a_15 Total unit costs $fill in the blank c6f59d04bfb200a_16 $fill in the blank c6f59d04bfb200a_17 $fill in the blank c6f59d04bfb200a_18 Question Content Area b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying cases. Fixed factory overhead is to this decision