=+9-22 KK Target pricing, target cost and value engineering OBJECTIVES 2, 4 Boscoe Ltd manufactures component parts.
Question:
=+9-22 KK Target pricing, target cost and value engineering OBJECTIVES 2, 4 Boscoe Ltd manufactures component parts. One product, DN25, has annual sales of 50000 units. Boscoe Ltd sells DN25 for $40.60 per unit. It has two direct cost categories (direct materials, direct manufacturing labour) and two activity-based categories (engineering and testing). All R&D and design costs are included in the engineering cost category. There are no marketing, distribution or customerservice costs. The cost driver for engineering is engineer-hours and the cost driver for testing is test-hours. Testing costs are variable costs. Engineering costs are fixed costs based on engineering capacity. Information on annual costs includes the following;
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan