Differential Analysis Report - ACCOUNTING

Snipe Company has been purchasing a component, Part Q, for $19.20 a unit. Snipe is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by the absorption costing method, is estimated as follows: Direct materials $11.50 Direct labor 4.50 Variable factory overhead 1.12 Fixed factory overhead 3.15 Total Hide Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q. Round your answers to two decimal places. snipe Company Proposal to Manufacture Part Q March 12, 20- Differential cost to manufacture part: Cost savings from manufacturing Part