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Make-or-Buy Decision Direct materials Direct labor Factory overhead ( 43% of direct labor) Total cost per unit $25.00 a. Prepare a differential analysis dated May
Make-or-Buy Decision Direct materials Direct labor Factory overhead ( 43% of direct labor) Total cost per unit $25.00 a. Prepare a differential analysis dated May 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. Round your answers to two decimal places. If an amount is zero, enter " 0 ". Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Carrying Case LineItemDescription(Alternative2)MakeCarryingCase(Alternative1)(Alternative2)BuyCarryingCase Unit costs: Purchase price Direct material Direct labor Variable factory overhea Fixed factory overhead Total unit costs b. Assuming there were no better alternative uses for the spare capacity, it would to manufacture the carrying cases. Fixed factory overhead is to this decision
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