Upstate Mechanical, Incorporated, has been producing two bearings, components T79 and B81, for use in production. Data regarding these two components follow. T79 B81 Machine hours required per unit 2.5 3.0 Standard cost per unit: Direct material $ 2.25 $ 3.75 Direct labor 4.00 4.50 Manufacturing overhead Variablex 2.00 2.25 Fixedt 3.75 4.50 Total $ 12.00 $ 15.00 *Variable manufacturing overhead is applied on the basis of direct-labor hours. TFixed manufacturing overhead is applied on the basis of machine hours. Upstate Mechanical''s annual requirement for these components is 8,000 units of T79 and 11,000 units of B81. Recently, management decided to devote additional machine time to other product lines, leaving only 41,000 machine hours per year for producing the bearings. An outside company has offered to sell Upstate Mechanical its annual supply of bearings at prices of $11.25 for T79 and $13.50 for B81. Management wants to schedule the otherwise idle 41,000 machine hours to produce bearings so that the firm can minimize costs (maximize net benefits). Required: 1. Compute the net benefit (loss) per machine hour that would result if Upstate Mechanical accepts the supplier's offer of $13.50 per unit for component B81. | |per machine hour if component B81 is purchased is | |