Kyle Birrell MBA 6120 Destin Brass Products Co. 1. first principle courting| | make ups| Valves| Pumps| watercourse Controllers| Cost Driver| units| | 7500| 12500| 4000| | Material Cost| | 16.00| 20.00| 22.00| Material| command patience| | 4.00| 8.00| 6.40| Labor| Set-up Labor| | 0.02| 0.05| 0.48| Labor| Receiving| 20000| 0.08| 0.30| 3.90| alphabet| treatment| 200000| 0.80| 3.04| 39.00| alphabet| Machine Depreciation| 270000| 12.60| 12.53| 4.73| Machine| Engineering| lakh| 2.67| 2.40| 12.50| first rudiment| Packing/Shipping| 60000| 0.24| 1.10| 10.95| ABC| Maintenance| 30000| 1.40| 1.39| 0.53| ABC| | | | | | | | unit of measurement Cost| 37.81| 48.82| 100.49| | 2. beat Unit Cost traditional| $ 37.56 | $ 63.12 | $ 56.50 | Standard Unit Cost Trad Rev| $ 49.00 | $ 58.95 | $ 47.96 | Standard Unit Cost ABC| $ 37.81 | $ 48.82 | $ 100.49 | | | | | at that place are pronounced conflicts in separately of the costing methods. Each of the traditional methods machine a iodin cost device driver to estimate and share the overhead to separately product.
The difference between the first and the revise traditional estimates comes from utilize a opposite cost driver for for each one method. The ABC method can use triune cost drivers since diametrical costs can be operate by different things. 3. By seeing the differences in each of the methods above, the lodges management would have to buy in on which method they impart move forward with. I would recommend they use the ABC method. By using this m ethod, their staff of life margin leave a! lone change for two of the cardinal products, namely the pumps and flow controllers. The will be making a much higher profit margin on the pumps, hardly will need to do something to reduce costs on the flow controllers in ordinance to make money. There biggest disbursal is the handling cost for the controllers. 4. There should be no difference in the net income of the company as the...If you want to sustain a full essay, rewrite it on our website: BestEssayCheap.com
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