Tijuana Bronze Machining: Teaching Commentary

OVERVIEW This is a basic font in Activity-Based Costing (ABC) and Activity-Based wish (antiballistic missile). There is enough richness to the fact-situation to create a non-trivial calculational dustup for students without taking the case beyond an forward level. Also, the business primer 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 ask 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 transmit poke         4.00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct prod $)                            Standard unit cost         $37.56         $63.12         $56.50 * hit                            Machine depreciation         $270,000                   Set-up labor         2,688                   Receiving         20,000                   Materials manipulation         200,000                   Engineering         100,000                   Packing and shipping         60,000                   Maintenance         30,000                    Total crash Â!  Â Â Â Â Â Â Â $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 receipts         $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 boil is Variable (case says only direct strong is short-run variable). form 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 gather in          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         .4 8 Direct Labor         4.00    Â!  Â Â Â Â 8.00 ... This was a very good pawn for checking my answers. I recommend this essay to anyone who has to do a subject field or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of hard work. It helps when in that location are tools and friends at your disposal. Anyone looking to however their education should take in joining this community. If you want to stun a full essay, come in it on our website: OrderCustomPaper.com

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