Tijuana Bronze Machining Case Report

The following report was requested by Mr. Herb Alpert of Tijuana sunburn Machining. The following data was provided by Mrs. Mary Ford. troop 1Product profitableness AnalysisValvesPumpsFlow ControllersStandard unit of measurement monetary value$37.56$63.12$56.50Target selling terms$57.78$97.10$86.96Planned gross circumference %35%35%35% operate MonthActual selling price$57.78$81.26$97.07Actual gross margin35%22%42% bring out 2Monthly Production and apostrophize SummaryProduct lines ValvesPumpsFlow ControllersMonthly business 7,500 units12,500units4,000units(1 rule)(5 runs)(10 runs)Monthly shipments 7,500 units12,500units4,000units(1 shipment)(7 shipments)(22 shipments)Material and Labor CostMonthly TotalMaterial4 fractions5 components10 components2 @ $2 =$4 3 @ $2 =$6 4 @ $1 =$42 @ 6 =122 @ 7 =145 @ 2 =101 @ 8 =8Total$16 $20 $22 $458,000Labor ($16 per hour including employee benefits)Set-up Labor8hours8hours12hours168hoursper merchandise runper proceed sion runper production runRun Labor0.25hours0.50hours0.40hours 9,725 hoursper unitper unitper unit gondola Hours0.50hours0.50hours0.

20hours 10,800 hoursper unitper unitper unitManufacturing OverheadReceiving$20,000Materials handling200,000engineering100,000Packing and shipping60,000Maintenance30,000Machine depreciations (10 year life) 270,000Total $680,000 award 3Monthly Overhead Activity AnalysisValvesPumpsFlow ControllersReceiving: cod severally component4 transactions25 transactions100 transactionsonce per run3%19%78%Materials Handling:Handle separately component4 transactions25 transactions100 transac tionsonce per receipt (60% of equal)3%19%78! %Handle each component once4 transactions25 transactions100 transactionsper production run (40% of cost)3%19%78%Packing and shipping:One fisticuffs order per shipment1 transactions7 transactions22 transactions4%23%73%Engineering:Estimated engineering workloadpercentage (subjective)20%30%50%Maintenance and depreciation:Machine hours basis3,750hours6,250hours800hours35%58%7%Using the data provided, we calculated the product cost per unit for valves, pumps and accrue controllers that were reported in Exhibit 1. This was done by first calculating the strong cost for each item. This information was already provided to us by Exhibit 2. Material cost were $16 for valves, $20 for pumps, and $22 for flow controllers. Next require cut into was calculated by pickings the provided amount of labor used for each item and multiplying it by the TBM?s ongoing labor rate. Direct labor cost were $4 for valves, $8 for pumps, and $6.40 for flow controllers. We then added guide material cost and direct labor cost together for each item. Then that do was subtracted from the standard unit cost provided... If you expect to get a full essay, order it on our website: BestEssayCheap.com

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