Make-or-Buy DecisionMatchless Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of $58 per unit. The company, which iscurrently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The fully absorbed unit costs toproduce comparable carrying cases are expected to be as follows:Direct materials$24.00Direct labor22.00Factory overhead (42% of direct labor)9.24Total cost per unit$55.24If Matchless Technologies Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costsassociated with the cases are expected to be 13% 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 anegative amount if it represents an increase in cost.MATCHLESS TECHNOLOGIES COMPANYManufacture Carrying CaseDifferential Analysis ReportPurchase price of carrying caseDifferential cost to manufacture carrying case:NextCheck My WorkSign outP O 12:13 If Matchless Technologies Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costsassociated with the cases are expected to be 13% 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 anegative amount if it represents an increase in cost.MATCHLESS TECHNOLOGIES COMPANYManufacture Carrying CaseDifferential Analysis ReportPurchase price of carrying caseDifferential cost to manufacture carrying case:Direct materialsDirect laborVariable factory overheadCost savings from manufacturing carrying case v2.76 XFeedbackCheck My Worka. Follow Exhibit 8 in the text. For the make alternative, add the variable and fixed costs. For the buy alternative, add the purchase price and thefixed costs. Determine the differential effect on revenues, costs, and income (loss).NextCheck My WorkSign outP 0 12:1

Name: Make-or-Buy DecisionMatchless Technologies Company has been purchasin
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Make-or-Buy DecisionMatchless Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of $58 per unit. The company, which iscurrently operating below full capacity, charges factory overhead to production