Make or Buy Problem Alternative Differencial cost to make

Make Buy
Direct Materials ₱ 7,500,000 ₱ - ₱ 7,500,000
Direct Labor ₱ 12,000,000 ₱ - ₱ 12,000,000
Variable Costs:
Cost of Inspecting products ₱ 2,700,000 ₱ - ₱ 2,700,000
Cost of providing power ₱ 1,350,000 ₱ - ₱ 1,350,000
Cost of supervisory ₱ 1,200,000 ₱ - ₱ 1,200,000
Cost of setting up equipment ₱ 1,500,000 ₱ - ₱ 1,500,000
Cost of moving materials ₱ 500,000 ₱ - ₱ 500,000
Purchase cost ₱ 25,500,000 ₱ 25,500,000
Total relevant cost ₱ 26,750,000 ₱ 25,500,000 ₱ 1,250,000
It is cheaper by P 9,500 to make the component internally or in house