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Make-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which

Make-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 43% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $29.00 Direct labor 22.00 Factory overhead (43% of direct labor) 9.46 Total cost per unit $60.46 If Matchless 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 16% of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Alternative 2). If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February 24 Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effects (Alternative 2) Unit costs: Purchase price $fill in the blank cbb24d0a5032fa3_1 $fill in the blank cbb24d0a5032fa3_2 $fill in the blank cbb24d0a5032fa3_3 Direct materials per unit fill in the blank cbb24d0a5032fa3_4 fill in the blank cbb24d0a5032fa3_5 fill in the blank cbb24d0a5032fa3_6 Direct labor per unit fill in the blank cbb24d0a5032fa3_7 fill in the blank cbb24d0a5032fa3_8 fill in the blank cbb24d0a5032fa3_9 Variable factory overhead per unit fill in the blank cbb24d0a5032fa3_10 fill in the blank cbb24d0a5032fa3_11 fill in the blank cbb24d0a5032fa3_12 Fixed factory overhead per unit fill in the blank cbb24d0a5032fa3_13 fill in the blank cbb24d0a5032fa3_14 fill in the blank cbb24d0a5032fa3_15 Total unit costs $fill in the blank cbb24d0a5032fa3_16 $fill in the blank cbb24d0a5032fa3_17 $fill in the blank cbb24d0a5032fa3_18 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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