Make$-$or$-$Buy DecisionPizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $$57$ per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of $38\%$ of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows

Direct materials$$25\mathrm{.}00$

Direct labor $17\mathrm{.}00$

Factory overhead $(38\%$ of direct labor$)6\mathrm{.}46$Total cost per unit $$48\mathrm{.}46$

If Pizana 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 $12\%$ of the direct labor costs.Question Content Areaa. $$

A prepare a differential analysis dated May $31$ to determine whether the company should make $($Alternative $1)$ or buy $($Alternative $2)$ the carrying case. Round your answers to two decimal places. If an amount is zero, enter $"0".$

Differential AnalysisMake $($Alt$.1)$ or Buy $($Alt$.2)$ Carrying CaseMay $31$

Line Item DescriptionMake Carrying Case$($Alternative $1)$Buy Carrying Case$($Alternative $2)$Differential Effects$($Alternative $2)$Unit costs:

Purchase price$

Direct materials

Direct labor

Variable factory overhead

Fixed factory overhead

Total unit costs