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(c) Suppose Bramble Company's managers want to implement target costing. Under target costing, the managers need to determine the amount of cost savings that must
(c) Suppose Bramble Company's managers want to implement target costing. Under target costing, the managers need to determine the amount of cost savings that must be achieved to earn a desired level of profit. If they must set a competitive price of $696.45 and require a 10% profit based on the total cost calculated in the previous part, how much cost savings must they generate? (Round answer to 2 decimal places, e.g. 52.75.) Cost savings required $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Bramble Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Cost Cost Allocation Activity Driver Rate Machine setup Number of setups $ 60 Material handling Number of parts 0.6 Machining Machine hours 27 Assembly Direct labour hours 23 Inspection Number of finished units 13 During the month, 100 units were produced, requiring 4 setups. Each unit consisted of 18 parts and used 1.5 direct labour hours and 1.25 machine hours. Direct materials cost $100 per finished unit. All other manufacturing costs are classified as conversion costs. ABC costs for research and marketing costs are $140 per unit. All other nonmanufacturing ABC costs are $360 per unit. (a) Calculate the manufacturing cost per unit for the period. (Round answer to 2 decimal places, e.g. 52.75.) Cost per unit $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Calculate the total cost (manufacturing and nonmanufacturing costs) per unit for the period. (Round answer to 2 decimal places, e.g. 52.75.) Total cost per unit $
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