Neuro
Neuro Instruments uses a manufacturing costing system with one?direct-cost category?(direct materials) and three?indirect-cost categories:
Neuro Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categories: 0 (Click the icon to view the categories.) 0 (Click the icon to view additional information.) Read the muirements. Requirements 1 and 2. Calculate the manufacturing cost per unit of HJ6 in 2016, then in 2017. (Round your answers to the nearest whole dollar.) 2016 2017 cost per unit cost per unit Direct materials $ 1,400 $ 1,300 Batch-level costs 198 122 Mfg. operations costs 474 313 142 12 Engineering change costs Total $ 2,214 $ 1,747 Requirement 3. Did Neuro Instruments achieve the target manufacturing cost per unit for HJ6 in 201T? Explain. Begin by computing the target manufacturing cost per unit for HJ6 in 2017. Determine the formula, then complete the computation. (Abbreviation used: mfg = manufacturing. Enter any ratios used in decimal form to two decimal places, .XX. Round your nal answer to the nearest whole dollar.) Requirement 3. Did Neuro Instruments achieve the target manufacturing cost per unit for HJ6 in 2017? Explain. Begin by computing the target manufacturing cost per unit for HJ6 in 2017. Determine the formula, then complete the computation. (Abbreviation used: mfg = manufacturing. Enter any ratios used in decimal form to two decimal places, .XX. Round your nal answer to the nearest whole dollar.) Target manufacturing |:| x E = cost per unit 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 madeIn response to competitive pressures at the end of 2016, Neuro Instruments used value-engineering techniques to reduce manufacturing costs. Actual information for 2016 and 2017 is as follows: 2016 2017 Setup, production-order, and materials-handling costs per batch EA 8,900 $ 8,000 Total manufacturing-operations cost per machine-hour EA 64 $ 48 Cost per engineering change $ 16,000 $ 8,000 The management of Neuro Instruments wants to evaluate whether value engineering has succeeded in reducing the target manufacturing cost per unit of one of its products, HJ6, by 5%. Actual results for 2016 and 2017 for HJ6 are: Actual Results Actual Results for 2016 for 2017 Units of HJ6 produced 2,700 4,600 Direct material cost per unit of HJ6 EA 1,400 $ 1,300 Total number of batches required to produce HJ6 60 70 Total machine-hours required to produce HJ6 20,000 30,000 Number of engineering changes made 24 7
