Meke-ar-Uuy Decison Diamonc Compe Compeny has been parchasing caryng cases for its portable computers at a purchase price of $59 per unit. The company, which is ourrently ooerating below hull capacity, charges factory overheed to productien at the rate of 40% of direct laber cost. The ully absorbed unit costs te produce comparable carrying cases are expected to be as folows: Drest materials $35.00 Dect lebor 18.00 ractery overheas (40% of direct labor) 7.20 Total cost per unit SG0.20 Lf Diamond Cemputer Company manufectures the carrying cases, fixcc tactory overhead cests will not intreese and varisble factory overhead costs associated with the cases are expeted to be 15% of the direct labor costs a. Presere a diterential analysis dated Fetnary 24 to determne whethe the compary should make (Atemative 1) or buy (Altermetive 2) the carrying case. ar an amount is zera, erter 0. f required, round your anSners o dec mai places. for those boxes in which yeu must enter subtracted or negative murnbers use aminus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (AIt. 2) February 24 Differential Errect Buy Carrying Case (Alternative 1) Case (Alternative 2) Make Carrying on Costs (Alternative 2) Sales Price Cass Puchese prike Direct mstersls per unit Direct labor per unit Variable actory ovehead per unit Fixed tactory evenead per unt
Meke-ar-Uuy Decison Diamonc Compe Compeny has been parchasing caryng cases for its portable computers at a purchase price of $59 per unit. The company, which is ourrently ooerating below hull capacity, charges factory overheed to productien at the rate of 40% of direct laber cost. The ully absorbed unit costs te produce comparable carrying cases are expected to be as folows: Drest materials $35.00 Dect lebor 18.00 ractery overheas (40% of direct labor) 7.20 Total cost per unit SG0.20 Lf Diamond Cemputer Company manufectures the carrying cases, fixcc tactory overhead cests will not intreese and varisble factory overhead costs associated with the cases are expeted to be 15% of the direct labor costs a. Presere a diterential analysis dated Fetnary 24 to determne whethe the compary should make (Atemative 1) or buy (Altermetive 2) the carrying case. ar an amount is zera, erter 0. f required, round your anSners o dec mai places. for those boxes in which yeu must enter subtracted or negative murnbers use aminus sign. Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (AIt. 2) February 24 Differential Errect Buy Carrying Case (Alternative 1) Case (Alternative 2) Make Carrying on Costs (Alternative 2) Sales Price Cass Puchese prike Direct mstersls per unit Direct labor per unit Variable actory ovehead per unit Fixed tactory evenead per unt
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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