Kocher 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. More info a. Setup, production-order, and materials-handling costs that vary with the number of batches b. Manufacturing-operations costs that vary with machine-hours c. Costs of engineering changes that vary with the number of engineering changes made More info In response to competitive pressures at the end of 2019 , Kocher Instruments used value-engineering techniques to reduce manufacturing costs. Actual information for 2019 and 2020 is as follows: Ine management ot Kocner instruments wants to evaluate whetner value engineering nas 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