Make-or-Buy Decision 39% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: \begin{tabular}{lr} Direct materials & $27.00 \\ Direct labor & 16.00 \\ Factory overhead ( 39% of direct labor) & 6.24 \\ \cline { 2 - 2 } & $49.24 \\ \hline Total cost per unit & \end{tabular} Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Carrying Case May 31