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Make-or-buy decision Instructions Labels and Amount Descriptions Differential Analysis Final Question Instructions Fremont Computer Company has been purchasing carrying cater for its portable computers at

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Make-or-buy decision Instructions Labels and Amount Descriptions Differential Analysis Final Question Instructions Fremont Computer Company has been purchasing carrying cater for its portable computers at a purchase price of $84 per unit. The company, which is currently operating below full capacity, charpes tactory overhead to production at the rate of 50% of Grect labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials 556 Direct labor 20 Factory overhead (50% of direct labor) 10 Total cost per unit 586 it Fremont Computer Company manufactures the carrying cases, food 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 Differential Analysis a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternativo 1) or buy (Atemalive 2) the carying 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 mnus sian here is no amount or an amount is zero, enter "O". A colon () will automatically appear it required Diferential Analysis Mako (Alternative 1) or Buy Ahernative 2) Carrying Caso September 30 Make Carrying Buy Carrying Case Case (Alternative 1) (Alternative) Differential Effect on Income (Alternative 2) 2 3 bel) 5 6

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