So I have the first part of Problem 19.2B solved in the textbook of financial and managerial accounting, however the second part (questions E, F, and G) are still to be solved. This requiresresults or numbers from a spreadsheet format, one that I can not enter here properly, but have written it down in order (Categories listed in order for your reference to the numbers below goes: Activitiy/ Costs/ Driver/ and Demands for PAR and then VEE), but if you can find this question on the site, it will show it for you also.

Machine set ups (activity)- $350,000 (cost) - # of set ups (driver) - PAR=100 - VEE=300 (demands).....Purchase orders- $650,000- # of orders- PAR=300- VEE= 100.....Machining- $500,000- # of machine hours- PAR=3,000- VEE=4,000.....Inspection- 300,000- # of batches- PAR=40- VEE=20.....Shipping to customers- $200,000- # of shipments- PAR=400- VEE=100.....Total fixed overhead=$200,000

Below are the following questions:

E. What proportion of fixed overhead is value added? In attemtping to reach the target cost for VEE, which activity would you look to imrpoving first and why?

F. Parvees production manager believes that design changes would reduce the number of set ups required for VEE to 75. Fixed overhead costs for set up would remain unchanged. What will be the impact of the design changes on the manufacturing costs of both prodcuts? Which of the products will earn the desired return?

G. An alternative to the design change is to purchase a new maching that will reduce the number of setups for PAR to 50 and the bunber of setups for VEE to 140. The machine also will reduce fixed set up costs to $275,000. Calucate the manufacturing costs for each product if the machine is purchased. Should VEE be redeigned or should the machine be purchased? Why?

Thanks