ABC_Case_Tijuana Bronze _1

ABC_Case_Tijuana Bronze _1 - 42.59 Estimation of Product...

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Tijuana Bronxe Machining Product cost per unit- current system Valves Pumps Flow Controllers Material 16 20 22 Direct Labour (Run) 4 8 6.4 Overheads 17.56 35.12 28.096 Unit cost 37.56 63.12 56.50 Overheads Machine Depreciation 270000 Set-up labour 2688 Receiving 20000 Materials handling 200000 Engineering 100000 Packing and shipping 60000 Maintenance 30000 682688 Total Run labour 155600 Overhead rate 439% Contribution Margin Valves Pumps Flow Controllers Actual Selling Price 57.78 81.26 97.07 Material 16 20 22 Direct Labour (Run) 4 8 6.4 Set-up labour 0.02 0.05 0.48 Contribution Margin 37.76 53.21 68.19 Contribution Margin (in %) 65% 65% 70% Revised Product Cost Material 16 20 22 Direct Labour (Run) 4 8 6.4 Set-up labour 0.02 0.05 0.48 Material overhead cost 7.68 9.6 10.56 Machine overheads 21.30 21.30 8.52 Revised Standard Unit Cost 48.99 58.95 47.96 Standard Unit Cost (Exhibit-1) Material related overhead Material receiving 20000 Material handling 200000 220000 Overhead cost 48.03% Other overheads Machine Depreciation 270000 Engineering 100000 Packing and Shipping 60000 Maintenance 30000 460000 Overhead rate per Machine hour
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Unformatted text preview: 42.59 Estimation of Product cost using " Activity Based costing Valves Pumps Flow Controllers Per unit 7500Per unit 12500Per unit 4000 Material 16 120000 20 250000 22 88000 Labour 4 30000 8 100000 6.4 25600 Overhead: Set-up 0.02 0.05 0.48 Receiving 0.08 600 0.304 3800 4 15600 Material handling 0.8 6000 3.04 38000 39 156000 Packing and Shippin 0.32 2400 1.104 13800 10.95 43800 Engineering 2.67 20000 2.40 30000 12.5 50000 Maintenance 1.4 10500 1.392 17400 0.525 2100 Machine Depreciatio 12.5 93750 12.5 156250 5 20000 17.78 133250 20.79 259250 72.36 287500 Total cost 37.78 283250 48.79 609250 100.76 401100 Comparison of Product Profitability Valves Pumps Flow Controllers Actual Selling Price 57.78 81.26 97.07 Existing Costing 37.56 63.12 56.496 Revised Costing 48.99 58.95 47.96 ABC cost 37.78 48.79 100.76 Margin Existing Costing 20.2 18.1 40.6 Revised Costing 8.8 22.3 49.1 ABC cost 20.0 32.5-3.7...
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This note was uploaded on 02/29/2012 for the course E 101 taught by Professor Sfere during the Spring '12 term at Abilene Christian University.

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ABC_Case_Tijuana Bronze _1 - 42.59 Estimation of Product...

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