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Unformatted text preview: Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Manufacture Carrying Case October 11, 2010 Purchase price of carrying case $68.00 Differential cost to manufacture carrying case: Direct materials $25.00 Direct labor 32.00 Variable factory overhead 4.80 61.80 Cost savings (loss) from manufacturing carrying case $6.20 b. Is it advisable to make or buy the manufacturing case? Make Explain (select your answer from the drop-down list): Instructions It is less costly to make the cases. Fixed factory overhead is irrelevant, because it wil be stil be incurred....
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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.
- Winter '08