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aleksandrvk [35]
2 years ago
15

Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $24 per unit. The

company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $8.00 Direct labor 12.00 Factory overhead (40% of direct labor) 4.80
Total cost per unit $24.80
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 25% of the direct labor costs.
Prepare a differential analysis dated April 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0". If required, round your answers to two decimal places.

Business
1 answer:
blsea [12.9K]2 years ago
6 0

Answer:

Variable factory overhead = 3.00

Fixed factory overhead = 1.80

Explanation:

See the table in the attached image

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Check the explanation

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To calculate or compute the annual percentage growth rate over a particular year period, minus the opening value from the ending value, after which you’ll divide by the opening value. Then multiply the result you got by 100 to get your growth rate that is demonstrated as a percentage.

The step by step calculation can be seen below:

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