OVERVIEW This is a basic font in Activity-Based Costing (ABC) and Activity-Based oversight (antiballistic missile). There is enough richness to the fact-situation to create a non-trivial calculational altercate for students without taking the case beyond an previous level. Also, the business undercoat 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 unavoidable 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 whole - contemporary System Valves         Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 orchestrate poke         4. 00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct push back $)                         Standard unit cost         $37.56         $63.12         $56.50 * hit                         Machine depreciation         $270,000                 Set-up labor         2,688                 Receiving         20,000                 Materials use         200,000                 Engineering         100,000                 Packing and shipping         60,000                 Maintenance         30,000                 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 prod is Variable (case says only direct strong is short-run variable). toy 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.         revise Product Unit costs per More Modern billet         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 L abor         4.00         8! .00 ... This was a very good nib for checking my answers. I recommend this essay to anyone who has to do a story or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of secure work. It helps when in that location are tools and friends at your disposal. Anyone looking to gain their education should take in joining this community. If you want to puddle a full essay, come in it on our website:
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