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Wednesday, November 13, 2013

Tijuana Bronze Machining: Teaching Commentary

OVERVIEW This is a basic font in Activity-Based Costing (ABC) and Activity-Based trouble (antiballistic missile). There is enough richness to the fact-situation to create a non-trivial calculational dispute for students without taking the case beyond an front level. Also, the business downplay for the calculations is rich enough to support good discussion on the managerial implications. I use Tijuana Bronze as the introductory case on ABC/ABM in the postulate managerial accounting course at Tuck and at Babson. The viii assignment questions force students to address the ABC calculations and the ABM managerial implications. Answers to the assigned questions are shown below. Question 1.         Product cost per unit of measurement - contemporary System Valves          Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 run poke         4.00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct labour $)                            Standard unit cost         $37.56         $63.12         $56.50 * command processing overhead time                            Machine depreciation         $270,000                   Set-up labor         2,688                   Receiving         20,000                   Materials handling         200,000                   Engineering         100,000                   Packing and shipping         60,000                   Maintenance        Â Â 30,000            Â!  Â Â Â Â Â  Total smash         $682,688                   Total take labor = 9,725 hours x $16 = $155,600 Overhead rate = 682,688 / 155,600 = 439% Question 2.         Estimated Contribution marge for Products          Valves          Pumps         Flow Controllers tax income         $57.78         $81.26         $97.07 Variable Costs--Material only         16.00         20.00         22.00 Contribution         41.78         61.26         75.07 or                            Assume fag out is Variable (case says only direct strong is short-run variable). string Labor         4.00         8.00         6.

40 Set-up Labor         ~.02         ~.05         ~.48         4.02         8.05         6.88 Contribution         $37.76         $53.21         $68.19 Question 3.          rewrite Product Unit costs per More Modern trip up          Valves          Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 Material Related Overhead (48%)          7.68          9.60          10.56 Set-up Labor         .02      Â Â Â Â .05         .48 Direct Labor !         4.00         8.00 ... This was a very good cocksucker for checking my answers. I recommend this essay to anyone who has to do a narration or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of aphonic work. It helps when in that location are tools and friends at your disposal. Anyone looking to notwithstanding their education should take in joining this community. If you want to get a full essay, come in it on our website: OrderCustomPaper.com

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