the comparry's gross profit is 35% of sales, but the company's target gross profit percentage is 40%. The company's current monthly cost of production is $1,355,000. of this cost, 50% in for laber, 30% is for materiak, and 20% is for overhend. The strategic intiative being tested at Quicksaw is a redesign of its production process that spats the process inco two sequential procedures, The makeup of the costs of production for Frocedure 1 is currently 50% direct labor, 45% direct materiaks, and 5% overhesd. The makeup of the costs of probution for Procedure 2 is currentiy 55% drect iaber, 25% direct materials, and 20 W cwertead. Company management estimates that Procedure 1 costs twice as much as Procedure 2. Required: 1. Determine what the cost of ubos, materials, and overhead for both Frocedures 1 and 2 would need to be for the compary to meet its target gross prohr at the cerrent levef of sules. 2. The company's actual direct moterias cost is $390,600 for Procedure 1. Determine the actual cost of dinect labor, direct materials, and overhead for each procedure, and the tocal cost of production for each procedure. Cost makeub of Proredure s. CSR intebve is expected to enable the compary to meet its target orows profit bercentape (holding all other costs constant). Maxirhum new cost of P2 overhead materials: the comparry's gross profit is 35% of sales, but the company's target gross profit percentage is 40%. The company's current monthly cost of production is $1,355,000. of this cost, 50% in for laber, 30% is for materiak, and 20% is for overhend. The strategic intiative being tested at Quicksaw is a redesign of its production process that spats the process inco two sequential procedures, The makeup of the costs of production for Frocedure 1 is currently 50% direct labor, 45% direct materiaks, and 5% overhesd. The makeup of the costs of probution for Procedure 2 is currentiy 55% drect iaber, 25% direct materials, and 20 W cwertead. Company management estimates that Procedure 1 costs twice as much as Procedure 2. Required: 1. Determine what the cost of ubos, materials, and overhead for both Frocedures 1 and 2 would need to be for the compary to meet its target gross prohr at the cerrent levef of sules. 2. The company's actual direct moterias cost is $390,600 for Procedure 1. Determine the actual cost of dinect labor, direct materials, and overhead for each procedure, and the tocal cost of production for each procedure. Cost makeub of Proredure s. CSR intebve is expected to enable the compary to meet its target orows profit bercentape (holding all other costs constant). Maxirhum new cost of P2 overhead materials