Question

Zunz Company, a producer of wooden toys, is about to adopt a lean operating environment. In anticipation of the change, Zunz’s controller prepared the following list of costs for December:


Required
1. Identify each cost as direct or indirect, assuming that it was incurred in a traditional manufacturing setting.
2. Identify each cost as direct or indirect, assuming that it was incurred in a lean operating environment.
3. Assume that the costs incurred in the lean operating environment are for a work cell that completed 1,250 toy cars in December. Compute the total direct cost and the direct cost per unit for the carsproduced.


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  • CreatedMarch 26, 2014
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