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My Home X CengageNOWv2 | ( x _ Final Group Project X Mail - Frank Sajdak X + V /takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false X F Paused Pizana Computer
My Home X CengageNOWv2 | ( x _ Final Group Project X Mail - Frank Sajdak X + V /takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false X F Paused Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 37% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $26.00 Direct labor 19.00 Factory overhead (37% of direct labor) 7.03 Total cost per unit $52.03 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 13% of the direct labor costs. 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 "o". Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Carrying Case May 31 Line Item Description Make Carrying Case Buy Carrying Case Differential Effects (Alternative 1) (Alternative 2) ( Alternative 2) Unit costs: Purchase price Direct materials Direct labor Variable factory overhead Fixed factory overhead Check My Work Previous Next OLD 12:16 P 8/10/202 PASS 9 PX My Home X CengageNOWv2 | ( x | Final Group Project X Mail - Frank Sajdak X + takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Paused to produce comparable callying cases are expected to be Direct materials $26.00 Direct labor 19.00 Factory overhead (37% of direct labor) 7.03 Total cost per unit $52.03 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 13% of the direct labor costs. 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 May 31 Line Item Description Make Carrying Case Buy Carrying Case Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price Direct materials Direct labor Variable factory overhead Fixed factory overhead Total unit costs Previous Next Check My Work 12:1 OLD NO 8/10/ 8 O
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