Tijuana bronze case study

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  • Publié le : 18 septembre 2010
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VALVES PUMPS FLOW CONTROLLERS
1

DIRECT MATERIALS 16 20 22

LABOUR
RUN LABOUR (7500X.25*16/7500)= 4 (12500X.5*16/12500)= 8(4000X.4*16/4000)= 6.4


TOTAL OVER HEAD 680000 GIVEN PLUS SET UPLABOUR COST ( 16 X 168) = 682688

TOTALRUN OVER HEAD COST 155600 ( 9725 X 16)

OVERHEAD ABSROBTION RATE4.387455013

OVERHEAD ASSIGNED 17.54982005 35.0996401 28.07971208

UNIT PRODCOST 37.54982005 63.0996401 56.47971208

2 CONTIBUTIONMARGIN =SALES LESSVARIABLECOST
SALES 57.78 81.26 97.07
VARIABLECOST 16 20 22

CONTRIBUTION MARGIN 41.78 61.26 75.07

ANALYSIS: The flowcontrollers have the highest contributionmargin.However overhead cost shouldnot be disregarded since marginal custometrs
are willing to buy products based on marginalprices .

3 overhead allocation rate formaterial handling /receiving =( 200000+ 20000 ) divided by total mat cost 0.480349345
related over head 7.68558952 9.6069869 10.56768559

other overhead on machine hourdepreciation 270000
engineering 100000
pack& ship 60000
maintenance 30000
460000

machinehours 10800rate 42.59259259

overhead assigned 21.2962963 21.2962963 8.518518519

new costing valve pump controller
material 16 20 22
materialrelated o/h7.68558952 9.6069869 10.56768559
setup labour 0.02 0.05 0.48
direct labour 4 8 6.4
other overhead 21.2962963 21.2962963 8.518518519
total 49.0018858258.9532832 47.96620411

ABC
VALVES PUMP FLOW CONTROLLER TOTAL

4 MATERIAL 120000 250000 88000 458000
LABOUR 30000 100000 25600 155600
OVERHEAD...
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