Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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White tiger electronic produces CD players using an automated assembly line process.
Transcribed Image Text:White Tiger Electronics produces CD players using
an automated assembly line process. The standard
cost of CD players is $148 per unit? (labor, $27;
materials, $75; and overhead, $46). The sales price
is $325 per unit.
To achieve a 13 percent multifactor productivity
improvement by reducing overhead costs only,
one needs to reduce the overhead cost by
percent.
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