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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:

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