Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Jul 2017 My Price 4.00

automated assembly

CD players are produced on an automated assembly line process. The standard costs of CD players are $150/unit (labor - $30 per unit; materials - $70 per unit; and overhead - $50 per units. The sales price is $300 per unit. 
To achieve a 10 percent multi-factor productivity improvement by reducing materials costs only, by what % must these costs be reduced?
Week 1 Units produced = 1,124 Labor($) = 12,735 Material($) = 21,041 Overhead($) = 8,992 
1) My question is, is the multi-factor correct above and am I on the right path? 
2) If yes, how would I figure out the 10% cost savings by reducing materials costs? Would I take 21,041 * 10% = $2,104.10 and subtract that from $21,041 to get 18,936.90?
Week 1 
Multi-factor = 1,124 * $300/12,735+21,041+8,992 = 7.88 

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Maurice Tutor
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Status NEW Posted 24 Jul 2017 12:07 PM My Price 4.00

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