Make-or-buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a...

Transcribed Image Text:

Make-or-buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unt. The company, which is currently operating below fut capacity, charges factory overhead to production at the rate of 30% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to Dired materials Direct labor Factory overhead (39% of director) $24.00 20:00 Computer Campany manufactures the carrying cases, fed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 12% of the direct labor co Prepare a enter" rental analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Atemative 2), If required, round your answers to two decimal places. If an amount is For those boxes in which you must enter subtracted or negative numbers use a mi Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 3) February 24 Make Carrying Buy Carrying Case (Alternative 1) Case (Alternative 3) Differential Effects (Alternative 3) Purchase price Direct materials Der er un manufacture the carrying cases Foed factory overhead is to this decision Make-or-buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unt. The company, which is currently operating below fut capacity, charges factory overhead to production at the rate of 30% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to Dired materials Direct labor Factory overhead (39% of director) $24.00 20:00 Computer Campany manufactures the carrying cases, fed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 12% of the direct labor co Prepare a enter" rental analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Atemative 2), If required, round your answers to two decimal places. If an amount is For those boxes in which you must enter subtracted or negative numbers use a mi Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 3) February 24 Make Carrying Buy Carrying Case (Alternative 1) Case (Alternative 3) Differential Effects (Alternative 3) Purchase price Direct materials Der er un manufacture the carrying cases Foed factory overhead is to this decision