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Im having some trouble on this excel it is the differential analysis, product pricing, and ABC costing chapter. An explanation of the blanks would help
Im having some trouble on this excel it is the differential analysis, product pricing, and ABC costing chapter. An explanation of the blanks would help a lot
Diamond 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 40% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: If Diamond 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 February 24 to determine whether the company should make (Alternative 1 ) or buy (Alternative 2 ) the carrying case. b. On the basis of the data presented, would it be advisable to make the carrying cases or to continue buying them? Explain. Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (") will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. b. Assuming there are no better uses for the spare capacity, the carrying cases should be since costs per unit would by by doing so. The foced factory overhead is to the decision Thanks:)
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