Management has decided to reduce direct material and ordering costs by purchasing sub-assembled components and not individual parts. you must do the following.

Current							Changes
Manufacturing costs Information for 100,000 units							Revised Manufacturing costs Information for 100,000 units
Cost Category	Cost Driver	Cost Driver Qty	Budget units per cost driver	Budget Total Qty	Budgeted cost per unit		Budget cost driver QTY	Budget units per cost driver	Budget Total Qty	Budgeted Cost per unit of Cost Driver	Revised Total
Direct Material	Number of kits	1	100,000	100,000	180		?????	?????	?????	?????	?????
Direct Labor	Direct Labor hours	3	100,000	300,000	30		?????	?????	?????	?????	?????
Direct Machine	Machine-Hours	0	0	150,000	25		?????	?????	?????	?????	?????
Ordering and Receiving	Number of orders	100	100	10,000	40		?????	?????	?????	?????	?????
Test and inspection	Testing hours	15	100,000	1,500,000	2		?????	?????	?????	?????	?????
Rework	Rework	2	5,000	10,000	20		?????	?????	?????	?????	?????

	Revised Manufacturing costs for 100,000 units	Costs per 100,000
Direct Manufacutring Costs
Direct Material Costs
Direct Labor Costs
Direct Machine costs
Direct Manufacturing costs
subtotal
Manufacturing Overhead costs:
Ordering and receiving costs
Testing and inspection costs
Rework costs
Manufacturing Overhead Costs
Total Costs

Requirements: Using the Revised Category Costs tab, make the following changes under " Changes" Category. Other categories' costs remain same. - Reduce direct labor rate from $30.00 to $28.00 per unit - Reduce direct labor quantity from 3.00 to 2.65 hours per unit - Reduce receiving and shipping ordering quantity from 100 to 90 units. - Reduce testing and inspection from $2.00 to $1.75 per unit - Reduce rework costs from $20 to $18 per unit - Compute total costs for each category - Complete Revised Cost Information tab - Calculate total costs - Calculate cost per unit for each category, round to two decimal points

Show all calculations within the cells. This means that you must use formulas and links so that your thought process can be examined. You must also include a detailed explanation of each journal entry that you make or do not make on each date to convey your thought process.