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Strategic iniblativel and CSR Quicksaw inci is a production company that is in the process-of testing a strategic initiative aimed at intreaing grots prefie. The

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"Strategic iniblativel and CSR Quicksaw inci is a production company that is in the process-of testing a strategic initiative aimed at intreaing grots prefie. The campanc is arrect company's current monthly cost of production is 51,560,000, of this cost, 40% is for labor, 309 is for materials, and 300 , is for ovectueat. The strategic initiative being terted at Quickaw is a redesign of its production process that splits the process into two sequerthal orocidures, The production for Procedure 2 is currently 30% direct labor, 20% direct materials, and 30%6 overhead. Company marapement enimatim thit Pricebtare 1 costs twice as much as Procedure 2 Required: 1. Dotermine what the cost of labor, materials, and ovorhead for both procedores 1 and 2 would need to be for the ciongensy to meet ias tarpeet profit at the current level of sales. 2. The company's actual direct materials cost is $446,400 for Procedure 1. Determine the actuat cost of direct labog dirnct materials, and ovemeas each procedure, ind the total cost of production for oach procedure. Brafit percoctaon (rioldieng wil ohine conts comstarit). Of thes cost, 40\%s is for laboc, 30% a f for matenals, and 30% is for orethead. labor, 20% direct matenale, and 30% overhead, Compeny management estimates that Procedure 1 costs thace as moch as Procedure 2 . Required: tatiles. Cost makeun of Procndure 1 dis Cost makeup of Procedure 2: Direct Labor total rost of production for mach procedire Cost makeus af Procedure 2T 3. The compeny is planning a CSA initiative to reuse same of the indirect matenala used in production during Procedure 2 . These indirect materalis nennally maieue sow of the overhead cost for Procedure 2. but the CSR initiative would reduce the usege of indirect materiale. Determine what the mabumum nhw coat ar these indirsat materials ceult be for Procedure 2 If this CShinitiative is expected to enable the company to meet its target gross profit percentage (holding aliother oosta canstant) Maximum new coat of P2 overhead materiais:s s

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