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Pizana computer company has been purchasing caring cases for his portable computer at a purchase price of $ 80 per unit the company which is currently operating below full capacity try this factory overhead to production at the rate of 40% of direct labor cost the unit cost to produce comparable carrying cases are expect to be as follows direct materials five dollars direct labor eight dollars factory overhead 40% of direct labor $3.20 total cost per unit $16.20 prepare differential analysis dated May 31 to determine whether the company should make alternative one or by alternative to the carry case if an amount is zero

Pizana computer company has been purchasing caring cases for his portable computer at a purchase price of $ 80 per unit the company which is currently operating below full capacity try this factory overhead to production at the rate of 40% of direct labor cost the unit cost to produce comparable carrying cases are expect to be as follows direct materials five dollars direct labor eight dollars factory overhead 40% of direct labor $3.20 total cost per unit $16.20 prepare differential analysis dated May 31 to determine whether the company should make alternative one or by alternative to the carry case if an amount is zero

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pizana computer company has been purchasing caring cases for his portable computer at a purchase price of $ 80 per unit the company which is currently operating below full capacity try this factory overhead to production at the rate of 40% of direct labor cost the unit cost to produce comparable carrying cases are expect to be as follows direct materials five dollars direct labor eight dollars factory overhead 40% of direct labor $3.20 total cost per unit $16.20 prepare differential analysis dated May 31 to determine whether the company should make alternative one or by alternative to the carry case if an amount is zero
Transcribed Image Text:Pizana computer company has been purchasing caring cases for his portable computer at a purchase price of $ 80 per unit the company which is currently operating below full capacity try this factory overhead to production at the rate of 40% of direct labor cost the unit cost to produce comparable carrying cases are expect to be as follows direct materials five dollars direct labor eight dollars factory overhead 40% of direct labor $3.20 total cost per unit $16.20 prepare differential analysis dated May 31 to determine whether the company should make alternative one or by alternative to the carry case if an amount is zero
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