Instructions Jupiter Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $84 per unit. The company, which is currently operating below full capacity. charges factory overhead to production at the rate of 50% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows Direct materials Direct labor Factory overhead (50% of direct labor) 10 Total cost per unit If Jupiter Computer Company manufactures the carrying cases, fed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 10% of the direct labor costs Required: A Prepare a dated July 19 to determine whether the company should make (Alternative 1) or buy (Atematve 2) the carrying case. Refer to the of Label and Amount Descriptions for the exact wording of the answer choices for test entries For those boxes in which you must enter subtracted or negative numbers use a minus sign it there is no amount of an amount is zero, enter ' A colon () will automatically appear it required B. On the basis of the data presented, would it be advisable to make the carrying cases or to contre buying them? Explain B. On the basis of the data presented, would it be advisable Labels and Amount Descriptions Labels Cash flows from investing activities Costs Amount Descriptions Direct materials per unit Direct labor per unit Fixed factory overhead per unit Gain on sale of investments Income (Loss) Loss on sale of investments Purchase price Variable factory overhead per unit Differential Analysis A. Prepare a differential analysis, dated July 19 to determine whether the Descriptions for the exact wording of the answer choices for text entries. F Dinerentual Analysis A. Prepare a different analysis, dated July 19 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign it there is no amount or an amount szero, enter u. A colon () will automatically appear it required Differential Analysis Make Carrying Case (Alternative 1) or Buy Carrying Case (ternative 2) July 19 Make Carrying Differential Effect Carrying Case on Income Case Alternative 1) Alternative 2) (Alternative 2) B. On the basis of the data presented, would it be advisable to make the carrying cases or to continuer buying them? Explain Assuming there were no better alternative uses for the spare capacity. It would to manufacture the carrying cases because the cost savings would be so per unit. Faced factory overhead is because it will continue whether the carrying cases are purchased or manufactured
