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Make-or-Buy Decision Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 38% of direct labor cost. The total unit costs to produce comparable carrying cause expected to be as follows: Direct materials $30.00 Direct labor 20.00 Factory overhead (38% of direct labor) 7.6 Total cost per unit $57.6 Companion 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 14% of the direct labor costs . Prepare a aferential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Alternate ), If required, round your answers to two decimal places. If an amount is zero, enter "o". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Make Carrying Buy Carrying Differential Effects Case (Alternative 1) Case (Alternative 2) (Alternative 2) Unit costs Purchase price Direct materials per unit Direct labor per unit Variable factory overhead per unit bum will, Fixed factory overhead per unit Total unit costs 7.6 Direct materials $30.00 Direct labor 20.00 Factory overhead (38% of direct labor) Total cost per unit $57.6 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead conts associated with the cases are expected to be 10% of the direct labor costs. Prepare a differential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Huy Carrying Case (Alternative 2). It required, round your answers to two decimal places. If an amount is zero, enter "o". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Make Carrying Buy Carrying Differential Effects Case (Alternative 1) Case (Alternative 2) (Alternative 2) Unit costs Purchase price Direct materials per unit Direct labar per unit Variable factory overhead per unit Fixed factory overhead per unit 00 Total unit costs b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying canes Foed factory overheads to this decision Check My Work more Check My Work uses remaining Previous Next >