Question: Question Content Area Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currently operating at 70% of capacity, and

Question Content Area

Snipe Company has been purchasing a component, Part Q, for $19.20 per unit. Snipe is currently operating at 70% of capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q is estimated as follows:

Direct materials $11.50
Direct labor 4.50
Variable factory overhead 1.12
Fixed factory overhead 3.15
Total $20.27

Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q. Round your answers to two decimal places. If an amount is zero, enter "0".

Differential Analysis Make Part Q (Alternative 1) or Buy Part Q (Alternative 2) March 12
Make Part Q (Alternative 1) Buy Part Q (Alternative 2) Differential Effects (Alternative 2)
Unit costs:

Depreciation expenseInterest expensePurchase priceSupplies expensesVariable operating expenses

$- Select - $- Select - $- Select -

Direct materialsPurchase price of partRevenue from salesUtilities expenseVariable operating expenses

- Select - - Select - - Select -

Depreciation expenseDirect laborPurchase price of partRevenue from salesVariable operating expenses

- Select - - Select - - Select -

Interest expensePurchase price of partRevenue from salesVariable factory overheadVariable operating expenses

- Select - - Select - - Select -

Depreciation expenseFixed factory overheadPurchase price of partRevenue from salesVariable operating expenses

- Select - - Select - - Select -
Total unit costs $fill in the blank 21 $fill in the blank 22 $fill in the blank 23

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