Tijuana Bronze Machining: Teaching Commentary

OVERVIEW This is a basic font in Activity-Based Costing (ABC) and Activity-Based gaze (antiballistic missile). There is enough richness to the fact-situation to create a non-trivial calculational controversy for students without taking the case beyond an front level. Also, the business stress 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 require 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 pick out poke         4.0 0         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct childbed $)                            Standard unit cost         $37.56         $63.12         $56.50 * bud puddle items                            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         30,000                  ! Total knock         $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 taxation         $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 bear on is Variable (case says only direct strong is short-run variable). blend Labor         4.00         8.00         6.40 Set-up Labor         ~.02         ~.05         ~.48    Â Â Â Â Â Â 4.02         8.05         6.88 Contribution         $37.76         $53.21         $68.19 Question 3.         revise Product Unit costs per More Modern entrance          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         .05         .48 Direct Labor         4.00         8.00 ... This was a very good instrument for checking my answers. I recommend this essay to anyone who has to do a base or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of solid work. It helps! when in that location are tools and friends at your disposal. Anyone looking to elevate 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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