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Make - or - Buy DecisionPizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $ 5 7
MakeorBuy DecisionPizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $ per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows
Direct materials$
Direct labor
Factory overhead of direct laborTotal cost per unit $
If Pizana 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 of the direct labor costs.Question Content Areaa.
A prepare a differential analysis dated May to determine whether the company should make Alternative or buy Alternative the carrying case. Round your answers to two decimal places. If an amount is zero, enter
Differential AnalysisMake Alt or Buy Alt Carrying CaseMay
Line Item DescriptionMake Carrying CaseAlternative Buy Carrying CaseAlternative Differential EffectsAlternative Unit costs:
Purchase price$
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Total unit costs
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