help me chapter 12
E l CmgagaLng l r": CengageNDWvZIOnlineteach' x + 7 6 G [a lil https:,f/v2.cengagenow.com,'ilrnftakeAssignment/takeAssignmentMain.do?invoker:&takeAssignmentSessionLocator:&i... a {a $5 Chapter 12 Print Item Value-Added and Kaizen Standards, Non-Value-Added Costs, Volume Variance, Unused Capacity Tom Young, vice president of Dunn Company (a producer of plastic products], has been supervising the implementation of an activityrbased cost management system. One of Tom's objectives is to improve process efficiency by improving the activities that dene the processes. To illustrate the potential of the new system to the president, Tom has decided to focus on two processes: production and customer service. Within each process, one activity will be selected for improvement: molding for production and sustaining engineering for customer service. (Sustaining engineers are responsible for redesigning products based on customer needs and feedback.) Value-added standards are identied for each activity. For molding, the value-added standard calls for nine pounds per mold. (Although the products differ in shape and function, their size, as measured by weight, is uniform.) The valueeadded standard is based on the elimination of all waste due to defective molds (materials is by far the major cost for the molding activity). The standard price for molding is $15 per pound. For sustaining engineering, the standard is 60 percent of current practical activity capacity. This standard is based on the fact that about 40 percent ofthe complaints have to do with design features that could have been avoided or anticipated by the company. Current practical capacity (the first year) is dened by the following requirements: 18,000 engineering hours for each product group that has been on the market or in development forfiye years or less, and 7,200 hours per product group of more than ve years. Four product groups have less than ve years' experience, and 10 product groups have more. There are 72 engineers, each paid a salary of $70,000. Each engineer can provide 2,000 hours of service per year. There are no other signicant costs for the engineering activity. For the rst year, actual pounds used for molding were 25 percent above the level called for by the valueeadded standard; engineering usage was 138,000 hours. There were 240,000 units of output produced. Tom and the operational managers have selected some improvement measures that promise to reduce non-value-added activity usage by 30 percent in the second year. Selected actual results achieved for the second year are as follows: Units produced 240,000 Pounds of material 2,600,000 Engineering hours 120,000 The actual prices paid per pound and per engineering hour are identical to the standard or budgeted prices. Che . ywwk ,9 Type here to search Cengage Log in X CengageNOWv2 | Online teachin X + X CA https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator= &i... Chapter 12 7 eBook Print Item The actual prices paid per pound and per engineering hour are identical to the standard or budgeted prices. ? Required: 1. For the first year, calculate the non-value-added usage and costs for molding and sustaining engineering. Non-Value-Added Usage Cost Molding Engineering Also, calculate the cost of unused capacity for the engineering activity. $ 210,000 Favorable v 2. Using the targeted reduction, establish kaizen standards for molding and engineering (for the second year). Molding 2,538,000 pounds Engineering 126,720 V engineering hours 3. Using the kaizen standards prepared in Requirement 2, compute the second-year usage variances, expressed in both physical and financial measures, for molding and engineering. Materials $ 930,000 Unfavorable v Engineering $ 235,200 Favorable v Feedback Check My Work Previous Next 7:26 PM Type here to search O 4/1/2021
