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Turnington Company is currently manufacturing Part P150. It produces 51,800 units of Part P150 per year. This part is used in the manufacturing of many

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Turnington Company is currently manufacturing Part P150. It produces 51,800 units of Part P150 per year. This part is used in the manufacturing of many products produced by Turnington. The breakdown of the cost per unit for P150 is shown below. Direct Materials $1.00 Direct Labor $6.00 Variable Overhead $3.50 Fixed Overhead $5.50 Unit Cost $16.00 The fixed overhead cost (at $5.50/unit above) would still remain with the company even if Turnington stops manufacturing Part P150. An outside supplier has offered to sell the same part to Turnington for $18.00. Currently, there is no alternative use for the capital assets used to produce Part P150. These capital assets will not be sold if the company chooses to buy Part P150. Do not enter dollar signs or commas in the input boxes, Use the negative sign for a negative change in operating income. a) Should Turnington Company make or buy Part P150? Cost to Make: $ Cost to Buy: $ Therefore Turnington should: Negreanu Tables Ltd. Manufactures three types of tables: wooden, plastic, and glass surfaced. Data on price and costs for the units are shown below. Wooden Plastic Glass Price $83.00 $56.00 $105.00 Variable Cost $35.00 $29.00 $46.00 Allocated Fixed Cost $4.00 $8.00 $6.00 Profit $44.00 $19.00 $53.00 per Unit The allocated fixed cost, which is fixed manufacturing overhead, is allocated to the three products using a rate of $2 per direct labor hour consumed by the product. There are 1,000 uncommitted hours of direct labor that can be allocated to manufacturing more products. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Which one of the three products should be produced using the available direct labor hours? Assume that Negreanu Tables will be within capacity to produce and sell the additional units

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