Assume that the 400000 in manufacturing overhead was driven

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Assume that the $400,000 in manufacturing overhead was driven by the following activities.How much of the $400,000 in manufacturing overhead cost is unutilized?

For this question only, assume that the ABC analysis showed that the total manufacturing cost of the unique model was $160 per unit. Anderson uses target costing to set its cost reduction goals. A recent market study revealed that customers would be willing to pay $180 for the unique product, and Anderson's stockholders require a 20% gross margin. What is the cost reduction target for the unique product?Provide two specific suggestions for how Anderson can use ABM to meet the cost reduction target calculated above?

Reference no: EM13576526

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