Question: Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $61 per unit. The company, which is currently
Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $61 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: 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. 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*
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