X E12-28 (similar to) Question Help O Meredith Corporation makes a special-purpose machine, D4H, used in the textile industry. Meredith has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Meredith presents the following data for 2016 and 2017. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017. Amount of Cost of unused capacity unused capacity (a) Manufacturing Selling and customer service (b) X More Info 2016 2017 250 265 $ 41,000 $ 44,000 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 305,000 312,500 7.00 $ 7.25 290 290 6. Total conversion costs $ 2,175,000 $ 2,233,000 $ 7,500 $ 7,700 100 customers 95 customers 7. Conversion cost per unit of capacity (row 6 / row 5) 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer (row 9 / row 8) $ 1,000,000 $ 940,500 $ 10,000 $ 9,900 Print Done i More Info Meredith produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Meredith can support, not the actual number of customers it serves. Meredith has 78 customers in 2016 and 85 customers in 2017