4.) Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currentlyoperating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The fully absorbed unit costs to produce comparable carryingcases are expected to be as follows:Direct materialsDirect laborFactory overhead (42% of direct labor)Total cost per unitIf Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with thecases are expected to be 14% of the direct labor costs.Sales PriceCosts:$30166.72$52.72a. Prepare a differential analysis dated February 24 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If required,round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.Differential AnalysisMake Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2)February 24Purchase priceDirect materials per unitDirect labor per unitVariable factory overhead per unitFixed factory overhead per unitIncome (Loss)Buy CarryingDifferential EffectMake CarryingCase (Alternative 1) Case (Alternative 2) on Income (Alternative 2)$$$

Name: 4.) Companion Computer Company has been purchasing carrying cases for
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 4.) Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currentlyoperating below full capacity, charges factory overhead to production at the rate of 42%