2. Ytze Inc. manufactures bath cubicles. The following activity information is available for its cubicles:ActivityFabricationAssemblySetupMaterials handlingActivity cost per unitActivity-based usage(hours per unit)Activity rate per hourActivity cost0.503216.000.404016.000.25328.000.30309.0049.00Management is looking to remove $7.00 of activity cost from the product in order to make the price more competitive. Assume the process improvement is put in place such thatassembly as well as setup required one-fourth less time to complete per unit.Based on the data, identify the correct statement.a. These process improvements reduced the activity cost of each battery from $49.00 to $43.00, or $6, thus not exceeding the $7.00 target.b. These process improvements reduced the activity cost of each battery from $49.00 to $44.00, or $5, thus not exceeding the $7.00 target.c. These process improvements reduced the activity cost of each battery from $49.00 to $42.00, or $7, thus exceeding the $7.00 target.d. These process improvements reduced the activity cost of each battery from $49.00 to $41.00, or $8, thus exceeding the $7.00 target.b Ytze Inc. manufactures bath cubicles. The following activity information is available for its cubicles: Management is looking to remove $7.00 of activity cost from the product in order to make the price more competitive. Assume the processimprovement is put in place such assembly as well as setup required one-fourth less time to complete per unit. Based on the data, identify the correct statement. a. These process improvements reduced the activity cost of each battery from $49.00to $43.00, or $6, thus not exceeding the $7.00 target. b. These process improvements reduced the activity cost of each battery from $49.00 to $44.00, or $5, thus not exceeding the $7.00 target. c. These process improvements reduced the activitycost of each battery from $49.00 to $42.00, or $7, thus exceeding the $7.00 target. d. These process improvements reduced the activity cost of each battery from $49.00 to $41.00, or $8, thus exceeding the $7.00 target.

Activity-Based Costing (ABC) is a cost accounting method that assigns indirect costs to products or…

Answered: Based on the data, identify the correct…

Based on the data, identify the correct statement. a. These process improvements reduced the activity cost of each battery from $49.00 to $43.00, or $6, thus not exceeding the $7.00 target.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 6CE: Pinter Company had the following environmental activities and product information: 1. Environmental...

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