2. The company's actual labor cost is $114,000 for Procedure 1. Determine the actual cost of direct labor, direct materials, andoverhead for each procedure, and the total cost of production for each procedure.Cost makeup of Procedure 1:Direct LaborDirect MaterialsOverheadTotalCost makeup of Procedure 2:Direct LaborDirect MaterialsOverhead4Total3. The company is planning a CSR initiative to recycle the indirect materials used in production during Procedure 1. The companyis paid for any of the indirect materials it recycles, and it applies the income from these payments as a direct offset to the cost ofthe direct materials. These indirect materials normally makeup 70% of the overhead cost for Procedure 1. Determine what themaximum new cost (net of recycling revenues) of these indirect materials could be for Procedure 1 if this CSR initiative were toenable the company to meet its target gross profit percentage without changing any other costs.Maximum new cost of P1 overhead materials: Strategic Initiatives and CSRBlue Skies Inc. is a retail gardening company that is piloting a new strategic initiative aimed at increasing gross profit. Currently,the company's gross profit is 25% of sales, and its target gross profit percentage is 30%. The company's current monthly salesrevenue is $600,000.The new initiative being piloted is to produce goods in-house instead of buying them from wholesale suppliers. Its in-houseproduction process has two procedures. The makeup of the costs of production for Procedure 1 is 40% direct labor, 45% directmaterials, and 15% overhead. The makeup of the costs of production for Procedure 2 is 60% direct labor, 30% direct materials,and 10% overhead. Assume that Procedure 1 costs twice as much as Procedure 2.1. Determine what the cost of labor, materials, and overhead for both Procedures 1 and 2 would need to be for the company tomeet its target gross profit.Cost makeup of Procedure 1:Direct LaborDirect MaterialsOverheadTotalCost makeup of Procedure 2:Direct LaborDirect MaterialsOverheadTotal

Name: 2. The company's actual labor cost is $114,000 for Procedure 1. Deter
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 2. The company's actual labor cost is $114,000 for Procedure 1. Determine the actual cost of direct labor, direct materials, andoverhead for each procedure, and the total cost of production for each procedure.Cost makeup of Procedure 1:Direct LaborD