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Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow. C15 3.00 019 4.50 Machine hours required per unit Standard
Tyson Corner Manufacturing produces two bearings: C15 and C19. Data regarding these two bearings follow. C15 3.00 019 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. 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
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