izana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 37% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Line Item Description Amount Direct materials $30.00 Direct labor 17.00 Factory overhead (37% of direct labor) 6.29 Total cost per unit $53.29 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 15% of the direct labor costs. Question Content Area 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". Differential AnalysisMake (Alt. 1) or Buy (Alt. 2) Carrying CaseMay 31 Line Item Description Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effects (Alternative 2) Unit costs:       Purchase price $Purchase price $Purchase price $Purchase price Direct materials Direct materials Direct materials Direct materials Direct labor Direct labor Direct labor Direct labor Variable factory overhead Variable factory overhead Variable factory overhead Variable factory overhead Fixed factory overhead Fixed factory overhead Fixed factory overhead Fixed factory overhead Total unit costs $Total unit costs $Total unit costs $Total unit costs

Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 39% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $29 Direct labor 18 Factory overhead (39% of direct labor) 7.02 Total cost per unit $54.02 If Somerset 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 April 30 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". Differential Analysis Make Carrying Case (Alt. 1) or Buy…

Make-or-Buy Decision Companion Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of $57 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 fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials Direct labor $24.00 21.00 Factory overhead (42% of direct labor). Total cost per unit 8.82 $53.82 < If Companion Technologies 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 report for the make-or-buy decision. Enter your final answer as a positive amount if it represents a net cost savings; enter a negative amount if it represents an increase in cost. COMPANION TECHNOLOGIES COMPANY Manufacture Carrying…

Variable and Absorption Costing-Service CompanyReally BC, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Really BC provides a quarterly lawn care service that is sold for $190. The variable and fixed cost data are as follows: Direct labor       $100.00 Overhead         Variable cost per unit       $33.00 Fixed cost (annual)       $100,000 Marketing, general and administrative         Variable cost (per service contract completed)       $34.00 Administrative expenses (fixed- annual cost)       $42,000   During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers.   Absorption Costing Income Statement Sales       Answer Cost of Goods Sold:         Beginning Inventory     Answer   Variable…