Exhibit 9 Product Cost Structures of Representative Products ( $ per 1.000 units) b) Exhibit 6 shows the reported product costs for five representative products. How accurate these numbers are? If you think they are inaccurate, what is your best estimate of their product costs? Note: Total budgeted direct labor dollars (including setup) for 1986 were $1.61 million (Exhibit 1). The direct labor dollar content (including setup) of the five representative products is: These numbers include direct labor dollars in the finishing department. Hint: Use the attaching machine (AM) costs and the total budgeted direct labor dollars to calculate a "correction factor" for the AM costs charges to the fasteners. You can then recalculate fastener costs and profitability. Exhibit 9 Product Cost Structures of Representative Products ( $ per 1.000 units) b) Exhibit 6 shows the reported product costs for five representative products. How accurate these numbers are? If you think they are inaccurate, what is your best estimate of their product costs? Note: Total budgeted direct labor dollars (including setup) for 1986 were $1.61 million (Exhibit 1). The direct labor dollar content (including setup) of the five representative products is: These numbers include direct labor dollars in the finishing department. Hint: Use the attaching machine (AM) costs and the total budgeted direct labor dollars to calculate a "correction factor" for the AM costs charges to the fasteners. You can then recalculate fastener costs and profitability