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I will upload the question Please show the work!!! 1) Coral Gables Electronics is considering reorganizing its plant into manufacturing cells. The company has the
I will upload the question
Please show the work!!! 1) Coral Gables Electronics is considering reorganizing its plant into manufacturing cells. The company has the following information: Before the change After the change Total annual sales $872,491 $1,036,902 Costs as percentage of sales: Direct materials 11.09% 9.36% Direct labor 5.68% 5.41% Manufacturing support costs 9.12% 8.47% Work-in-process inventory $305,974 $264,948 Inventory carrying costs are estimated to be 12.39% per year. As a result of the layout reorganization, what amount of annual change is projected 1. from carrying reduced levels of work-in-process inventory? Answer 2. for incremental manufacturing costs? Answer ___ 3. in total benefits? Answer __ 4) Maynotfloat Boat Co. in Highland Beach has the following information as part of its target costing process: Customer Importance Rating by Category Category Importance Safety 108 Comfort & convenience 137 Economy 36 Styling 96 Performance 123 Total 500 Target Cost by Function Group Function Group Exterior construction Interior finish Propulsion system Stability systems Food storage & preparation Total Category Safety Comfort & convenience Economy Styling Performance Converted component ranking Compone nt Cost 0.22 0.39 0.18 0.09 0.12 1.00 Target Cost $ 335,275 $ 584,391 $ 271,306 $ 129,814 $ 179,214 $ 1,500,000 Exterior Interior constructio buildout n 13.0% 2.7% 2.2% 5.8% 4.9% 19.2% 3.6% 13.4% 28.60% 36.20% Propulsation system Stability systems 2.2% 4.3% Food Relative storage & Feature prep Ranking 2.1% 21.6% 5.5% 0.7% 0.7% 14.8% 4.9% 17.70% 14.70% 2.80% (a) Using the information above, repare a schedule similar to Exhibit 8-10 and recommend which function group to enhance and which function group to reduce cost. 27.4% 7.2% 19.2% 24.6% 100.00%Step by Step Solution
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