Destin Brass

Kyle Birrell
MBA 6120
Destin Brass Products Co.
1.
first principle courting|
| make ups| Valves| Pumps| Flow Controllers| Cost Driver|
units| | 7500| 12500| 4000| |
Material Cost| | 16.00| 20.00| 22.00| Material|
Direct 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|
Handling| 200000| 0.80| 3.04| 39.00| alphabet|
Machine Depreciation| 270000| 12.60| 12.53| 4.73| Machine|
Engineering| 100000| 2.67| 2.40| 12.50| ABC|
Packing/Shipping| 60000| 0.24| 1.10| 10.95| ABC|
Maintenance| 30000| 1.40| 1.39| 0.53| ABC|
| | | | | |
| Unit 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 noticeable differences in separately of the costing methods. Each of the traditional methods implement a iodin cost driver to estimate and allocate the overhead to separately product.



The difference between the first and the revised traditional estimates comes from utilize a opposite cost driver for each method. The ABC method can use multiple cost drivers since diametrical costs can be driven 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 method, their moolah margin leave alone change for two of the three products, namely the pumps and flow controllers. The will be making a much higher profit margin on the pumps, but will need to do something to reduce costs on the flow controllers in ordinance to make money. There biggest expense 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 get a full essay, rewrite it on our website: Ordercustompaper.com



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