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Ortho 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
Ortho 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. Requirements 1 and 2. Calculate the manufacturing cost per unit of HJ6 in 2016, then in 2017. (Round your answers the nearest whole dollar.) 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 2016, Ortho Instruments used value-engineering techniques to reduce manufacturing costs. Actual information for 2016 and 2017 is as follows: The management of Ortho Instruments wants to evaluate whether value engineering has succeeded in reducing the target manufacturing cost per unit of one of its products, HJ6, by 15%. Actual results for 2016 and 2017 for HJ6 are: Requirements 1. Calculate the manufacturing cost per unit of HJ6 in 2016. 2. Calculate the manufacturing cost per unit of HJ6 in 2017. 3. Did Ortho Instruments achieve the target manufacturing cost per unit for HJ6 in 2017? Explain. 4. Explain how Ortho Instruments reduced the manufacturing cost per unit of HJ6 in 2017. 5. What challenges might managers at Ortho Instruments encounter in achieving the target cost? How might they overcome these challenges
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