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Hello.. plzz solve this .. with proper calculations 731 xx 1 Target pricing, target cost and value engineering roduction labour) and rvo a tinll Systematic

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731 xx 1 Target pricing, target cost and value engineering roduction labour) and rvo a tinll Systematic Ltd hroduG1hannuJECTIVES 1,2,3 Ltd Seation labour) and two activity-based indirect cost categories (engineering,testing). All R&D and design Systema Se sls G16 for $40.60 per unit. Systematic Ltd has two direct cost categories (direct materials, direct ct, G16, has annual sales of 50000 units. Systematic ts are included in the engineering cost category. There are no marketing, distribution or customer service costs. The cost driver for engineering is engineer-hours and the cost driver for testing is test-hours. Testing gosts are variable costs. Engineering costs are fixed costs based on engineering capacity. Information on annual costs includes the following: Direct materials: $14.98 per unit Direct production labour: $15 per direct production labour-hour Engineering: $14 per engineer-hour (based on capacity of 25000 engineering-hours) Testing:$12 per test-hour Each unit of G16 requires 0.5 direct production labour-hours to produce and 0.25 test-hours to test. labour rates appearing in this chapter have been chosen for calculation purposes and do not reflect real wage rates in Australia

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