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efficiency variances, benchmarking and ethics. Sunto Scientific manufacture s GPS 7-42 Price and devices for a chain of retail stores. Its most popular model, the
efficiency variances, benchmarking and ethics. Sunto Scientific manufacture s GPS 7-42 Price and devices for a chain of retail stores. Its most popular model, the Magellan XS, is assembled in a dedicated facility in Savannah, Georgia. Sunto is keenly aware of the competitive threat from smartphones that use Google Maps and has put in a standard cost system to manage production of the Magellan XS. It has also implemented a just-in-time system so the Savannah facility operates with no inventory of any kind. Producing the Magellan XS involves combining a navigation system (imported from Sunto's plant in Dresden at a fixed price), an LCD screen made of polarized glass, and a casing developed from specialte plastic. The budgeted and actual amounts for Magellan XS for July 2014 were as follows: Budgeted Amounts Actual Amounts 4,400 $89,000 4,450 $40,300 816 $12,500 4,250 37,200 2,040 4,000 $81,600 4,080 S40,000 Magellan XS units produced Navigation system cost Navigation systems Polarized glass cost Sheets of polarized glass used Plastic casing cost Ounces of specialty plastic used Direct manufacturing labor costs Direct manufacturing labor-hours $12,000 4,000 $36,000 2,000
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