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Please help. Thank you! Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow. C15 8.50 C19 15.50 $15.50 18.00
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Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow. C15 8.50 C19 15.50 $15.50 18.00 $17.00 17.00 Machine hours required per unit Standard cost per unit Direct material Direct labor Manufacturing overhead: Variable Fixed Total 16.00 17.00 $66.50 15.50 18.00 $67.50 Applied on the basis of direct labor hours Applied on the basis of machine hours The company requires 5,400 units of C15 and 12,300 units of C19. Recently, management decided to devote additional machine time to other product lines, resulting in only 159,050 machine hours per year that can be dedicated to production of the bearings. An outside company has offered to sell Tyson Corner the bearings at prices of $78.50 for C15 and $78.50 for C19. Required: a. Assume that Tyson Corner decided to produce all C15s and purchase C19s only as needed. Determine the number of C19s to be purchased. (Round "Machine hours per unit" to 2 decimal places.) Machine hours available Less: Machine hours for C15 Machine hours available for C19 Machine hours per unit of C19 Units to be manufactured Annual requirement Less: Units to be manufactured C19s to purchase b. Compute the net benefit to the company of manufacturing (rather than purchasing) a unit of C15. Repeat the calculation for a unit of C19. (Note: in answering this question, do not take into consideration any machine hours constraint). (Round your answers to 2 decimal places.) C150 19 Direct material Direct labor Variable overhead Total variable cost Purchase price quoted Less: Total variable cost Net benefit per unit of manufacturing c. Tyson Corner lacks sufficient machine time to produce all of the C15s and C19s needed. Which component (C15 or C19) should Tyson Corner manufacture first with the limited machine hours available? Which component (C15 or C19) should Tyson Comer manufacture first with the limited machine hours availableStep by Step Solution
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