= Homework: Chapter 14 Pricing Decisions Question 4, E14-20 (similar to) Part 1 of 7 Therapy Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categor (Click the icon to view the categories.) i (Click the icon to view additional information.) Read the requirements. Requirements 1 and 2. Calculate the manufacturing cost per unit of HJ6 in 2019, then in 2020. (Round your answers to the nearest who 2019 cost per unit Direct materials Batch-level costs Mfg. operations costs Engineering change costs Total More info ng a. Setup, production-order, and materials-handling costs that vary with the number of batches b. C. Manufacturing-operations costs that vary with machine-hours Costs of engineering changes that vary with the number of engineering changes made Print Done - X More info Part 1 of Points: U OT I In response to competitive pressures at the end of 2019, Therapy Instruments used value-engineering techniques to reduce manufacturing costs. Actual information for 2019 and 2020 is as follows: 2019 2020 Setup, production-order, and materials-handling costs per batch Total manufacturing-operations cost per machine-hour $ 8,400 $ 7,900 $ 58 $ 47 Cost per engineering change $ 18,000 $ 15,625 The management of Therapy Instruments wants to evaluate whether value engineering has succeeded in reducing the target manufacturing cost per unit of one of its products, HJ6, by 20%. Actual results for 2019 and 2020 for HJ6 are as follows: Actual Results for 2019 Actual Results for 2020 Units of HJ6 produced 4,500 5,000 Direct material cost per unit of HJ6 $ 3,000 $ 2,600 Total number of batches required to produce HJ6 60 70 Total machine-hours required to produce HJ6 29,250 28,500 Number of engineering changes made 10 8 Print Done