Question
Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows: 2013 2014 Direct materials: Plastic case $ 8.00 $ 7.60 Lens
Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows:
| 2013 | 2014 | |||
| Direct materials: |
| Plastic case | $ 8.00 | $ 7.60 | |||
| Lens set | 34.00 | 34.40 |
| Direct labor | 64.00 | (1.6 hours) | 60.00 | (1.5 hours) |
| Indirect manufacturing costs: |
| Variable | 16.00 | 14.20 | |||
| Fixed | 4.00 | (100,000 units) | 3.80 | (120,000 units) |
Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base.
Seemore's continuous improvement target for direct labor in 2014 was:
Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows:
| 2013 | 2014 | |||
| Direct materials: |
| Plastic case | $ 8.00 | $ 7.60 | |||
| Lens set | 34.00 | 34.40 |
| Direct labor | 64.00 | (1.6 hours) | 60.00 | (1.5 hours) |
| Indirect manufacturing costs: |
| Variable | 16.00 | 14.20 | |||
| Fixed | 4.00 | (100,000 units) | 3.80 | (120,000 units) |
Beginning in 2014, Seemore implemented a continuous improvement program that required a first-year cost reduction target of a 7 percent reduction of the 2013 base.
Seemore's continuous improvement target for direct labor in 2014 was:
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Thomas Calculus Early Transcendentals
Authors: Joel R Hass, Christopher E Heil, Maurice D Weir
13th Edition
978-0321884077, 0321884078
