JUDU 990,000 .000 12-6 Make-or-buy decision alboa Technologies Company has been purchasing carrying cases for its P mputers at a delivered cost of $20 per unit. The company, which is curte operating below full capacity, charges factory overhead to production at the rate 760% of direct labor cost. The fully absorbed unit costs to produce comparan carrying cases are expected to be as follows: Direct materials $ 9.00 Direct labor 7.50 Factory overhead (60% of direct labor) 4.50 Total cost per unit $21.00 a.cc fro $2.0 If Balboa Technologies 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 20% of the direct labor costs. 2. Prepare a differential analysis report, dated June 19, 2012, for the make-or-buy decision. b. On the basis of the data presented, would it be advisable to make the carry- ing cases or to continue buying them? Explain