i More Info - In response to competitive pressures at the end of 2019, Patient Care 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 $ 8,800 $ 7,900 Total manufacturing-operations cost per machine-hour $ 62 $ 49 Cost per engineering change $ 16,500 $ 14,000 The management of Patient Care Instruments wants to evaluate whether value engineering has succeeded in reducing the target manufacturing cost per unit of one of its products, HJ6, by 10%. Actual results for 2019 and 2020 for HJ6 are as follows: Actual Results Actual Results for 2019 for 2020 Units of HJ6 produced 4,500 7,000 Direct material cost per unit of HJ6 $ 1,800 $ 1,400 Total number of batches required to produce HJ6 60 80 Total machine-hours required to produce HJ6 29,250 39,200 Number of engineering changes made 15 10 $ i - More Info a. b. Setup, production-order, and materials-handling costs that vary with the number of batches Manufacturing-operations costs that vary with machine-hours Costs of engineering changes that vary with the number of engineering changes made c. Print Done Patient Care Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categories: (Click the icon to view the categories.) (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 whole dollar.) 2019 cost per unit Direct materials Batch-level costs Mfg. operations costs Engineering change costs Total i Requirements - 1. Calculate the manufacturing cost per unit of HJ6 in 2019. 2. Calculate the manufacturing cost per unit of HJ6 in 2020. 3. Did Patient Care Instruments achieve the target manufacturing cost per unit for HJ6 in 2020? Explain. 4. Explain how Patient Care Instruments reduced the manufacturing cost per unit of HJ6 in 2020 5. What challenges might managers at Patient Care Instruments encounter in achieving the target cost? How might they overcome these challenges? Print Done