BRIEF EXERCISE 8

BRIEF EXERCISE 8 - BRIEF EXERCISE 8-1 In order to obtain a...

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BRIEF EXERCISE 8-1 In order to obtain a profit margin of $14 per drive, Russell must set its target cost at $31 per drive ($45 – $14). It will then need to form a design team that will design a product that will meet quality specifications without exceeding the target cost. BRIEF EXERCISE 8-2 Direct materials. ................................................................................... $12 Direct labor. ........................................................................................... 8 Variable manufacturing overhead. ..................................................... 6 Fixed manufacturing overhead. .......................................................... 14 Variable selling and administrative expenses. ................................. 4 Fixed selling and administrative expenses. ...................................... 12 Total unit cost. .............................................................................. $56
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This note was uploaded on 05/16/2011 for the course AC 303 taught by Professor Richardkido during the Spring '11 term at Chaminade University.

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BRIEF EXERCISE 8 - BRIEF EXERCISE 8-1 In order to obtain a...

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