Question: Need some assistance with this question. It is one question but broken up into two pictures. Fill in the differential analysis. Make or Buy Decisions

Need some assistance with this question. It is one question but broken up into two pictures.

Need some assistance with this question. It is one question but brokenup into two pictures. Fill in the differential analysis. Make or Buy

Fill in the differential analysis. Make or Buy Decisions Differential Analysis Report Purchase price of 13,000 monitors $ 3,852,000 \\f Differential cost to make: Direct materials 5.3:] Direct Ieeer :1 Overheee :1 [:1 Differential income [loss] from making monitors $:] Make or Buy Decision: ZeeDrive Ltd. l5 a computer manufacturer. One of the items they make is monitors. ZeeDnve has the opportunity to purchase 18,000 monitors from an outside supplier for $214 per unlt. One of the Company's costeaooounting lnterns prepared the following schedule of ZeeiDrive's 00st to produce 13,000 monitors: Total cost of producing 18,000 monitors Unit cost Direct materials 35 2,088,000 $ 116 Direct labor 1,270,000 71 Variable factory overhead 666,000 37 xed manufacturing overhead 450,000 25 Fixed nonmanufacturing overhead 738,000 41 735 5,220,000 $ 290 You are asked to look over the intern's estimate before the information is shared with members of management who will decide to continue to make the monitors or buy them. The company's controller belleves that the estimate may be incorrect because it includes costs that are not relevant. If ZeeeDn've buys the monitors, the direct labor force currently employed in producing the monltors will be terminated and there would be no termination costs incurred. There are no materials on hand and no commitments to suppliers to purchase materlals, so all materials would need to be purchased to make the monitors. variable overheads are avoidable if monitors are bought. Fixed manufacturlng overhead costs would be reduced by $59,900, but nonemanufacturing costs would remaln the same if monitors are bought

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