E13-12 Cost of goods sold budget The controller of Pueblo Ceramics Inc. wishes to prepare a cost of goods sold budget for April. The controller assembled the following information for constructing the cost of Chapter 12 Differential Analysis The direct labor rate is $20 per hour. a. Determine the target cost for Model L-1819 assuming that the historical markup on product cost is maintained. b. Determine the required cost reduction. c. Evaluate the three enginecring improvements to determine if the required cost reduction (drift) can be achieved