Question: how do i do this chpt. 25 hw question Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price
Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $56 per unit. The company, which is currently operating below full capacity, charges factory cverhead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable camying cases are expected to be as follows: If Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs assocated with the cases are expected to be 14% of the direct labor costs. a. Prepare a differental analysis dated Apcil 30 to determine whether the company should make (Altemative 1) ar boy (Ahernative 2) the carrying case. If required, round your answers to two decimal places. If an amount is zero, enter " 0. b. Assuming there were no better aiternative uses for the spare capacty, it would to manufacture the carrying cases. Fixed factory overhead is 6 more Check My Work uses remaing
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