CIMA Engineering uses a manufacturing costing system with one direct cost category (direct materials)and three indirect cost categories:
In response to competitive pressures at the end of 2019, Medical Instruments used value-engineering
techniques to reduce manufacturing costs.Actual information for 2018 and 2019 is:
The management of CIMA Engineering wants to evaluate whether value engineering has succeeded in
reducing the target manufacturing cost per unit of one of its flow controllers by 10%.Actual results for 2018 and 2019 for the flow controller are:
Required:
a.Calculate the manufacturing cost for both years.

Question

CIMA Engineering uses a manufacturing costing system with one direct cost category (direct materials)and three indirect cost categories:
  In response to competitive pressures at the end of 2019, Medical Instruments used value-engineering
techniques to reduce manufacturing costs.Actual information for 2018 and 2019 is:
  The management of CIMA Engineering wants to evaluate whether value engineering has succeeded in
reducing the target manufacturing cost per unit of one of its flow controllers by 10%.Actual results for 2018 and 2019 for the flow controller are:
  Required:
a.Calculate the manufacturing cost for both years.

Quizplus · Accepted Answer

The Answer of CIMA Engineering uses a manufacturing costing system with one direct cost category (direct materials)and three indirect cost categories:
  In response to competitive pressures at the end of 2019, Medical Instruments used value-engineering
techniques to reduce manufacturing costs.Actual information for 2018 and 2019 is:
  The management of CIMA Engineering wants to evaluate whether value engineering has succeeded in
reducing the target manufacturing cost per unit of one of its flow controllers by 10%.Actual results for 2018 and 2019 for the flow controller are:
  Required:
a.Calculate the manufacturing cost for both years.

CIMA Engineering Uses a Manufacturing Costing System with One Direct