Business, 08.09.2020 14:01 Tyrant4life

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 plastic cases in 2014 was:
a. $8.00
b. $7.60
c. $7.44
d. $8.80

Answers: 2

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Seemore Company manufactures binoculars. The actual costs for 2013 and 2014 were as follows: 2013 2...

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