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 @uirements. 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 cost per unit Direct materials Batch-level costs Mfg. operations costs :| Engineering change costs Total 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 $ 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 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 70 Requirements - . Calculate the manufacturing cost per unit of HJ6 in 2016. . Calculate the manufacturing cost per unit of HJ6 in 2017. . Did Neuro Instruments achieve the target manufacturing cost per unit for HJ6 in 2017? Explain. . Explain how Neuro Instruments reduced the manufacturing cost per unit of HJ6 in 2017. . What challenges might managers at Neuro Instruments encounter in achieving the target cost? How might they overcome these challenges? Print I Done l