Question: please help Fremont Computer Compary has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which
Fremont Computer Compary has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: If Fremont Computer Company manufactures the carrying cases, fixed foctory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 5% of the direct labor costs; a. Prenare a differential analysis dated September 30 to determine whether the company should make (Aiternative 1 ) or buy (Alternative 2) the camying case, If an amount is zero, enter "0", If required, round your answers to two decimal places. Use a minus sign to indicate a loss: B. Assuming there were no better alternative uses for the spare capacity, if would to manufacture the carrying cases. Fixed factory overhead is to this decision
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