Answer:
Sundsvall Sailing
The reduction in work-in-process value = $576.96
Explanation:
a) Data and Calculations about MD2024 Foil Boards:
Old time to make the MD2024 board = 13 hours
Cost of making the board = $1,500
The cost per hour for making the board = $115.38 ($1,500/13)
The new cost for making the board = $923.04 ($115.38 * 8)
Therefore, the reduction in the work-in-process value = $576.96 ($1,500 - $923.04)
This reduction of $576.96 represents about 38.5% reduction ($576.96/$1,500 * 100).