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Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currentlyr operating at 70% of capacity, and no signicant increase
Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currentlyr operating at 70% of capacity, and no signicant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q is estimated as follows: Direct materials $11.50 Direct labor 4.50 Variable factory overhead 1.12 Fixed factory overhead 3.15 Total $20-27 Prepare a differential analysis report dated March 12 of the current year. Round your answers to two decimal places. If an amount is zero, enter "'0. Differential Analysis Make (Alternative 1) or Buyr (Alternative 2) Part Q March 12 Make Buy Differential Part: Q Part Q Effects (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: $l $l $l l l l l l r l l l l l l l l l l l i ii $l $l l Total unit costs
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