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Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow. C15 3.00 C19 4.50 Machine hours required per unit Standard
Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow. C15 3.00 C19 4.50 Machine hours required per unit Standard cost per unit Direct material Direct labor Manufacturing overhead: Variable $ 4.50 7.00 $ 6.00 6.00 Fixed* 5.00 6.00 $22.50 4.50 7.00 $23.50 Total Applied on the basis of direct labor hours Applied on the basis of machine hours The company requires 7,600 units of C15 and 11,200 units of C19. Recently, management decided to devote additional machine time to other product lines, resulting in only 50,700 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 $23.50 for C15 and $23.50 for C19. 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 Corner manufacture first with the limited machine hours available
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