=+/ a. Cost savings from making, $3.00 per Direct materials $25.00 case Direct labor 32.00 Factory overhead

Question:

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a. Cost savings from making, $3.00 per Direct materials $25.00 case Direct labor 32.00 Factory overhead (35% of direct labor) 11.20 Total cost per unit $68.20 If Hart 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 25% ofthe direct labor costs.

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