OVERVIEW This is a basic causa in Activity-Based Costing (ABC) and Activity-Based checkion (antiballistic missile). There is enough immenseness to the fact-situation to create a non-trivial calculational affray for students without taking the possibility beyond an introductory level. Also, the business telescope for the calculations is rich enough to sign good discussion on the managerial implications. I use Tijuana tan as the introductory case on ABC/ABM in the required managerial accounting course at Tuck and at Babson. The octette assignment questions force students to name the ABC calculations and the ABM managerial implications. Answers to the assigned questions argon shown below. Question 1.         crop Costs per unit - modern System Valves         Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 calculate poke         4.00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct hollow $)                         Standard unit personify         $37.56         $63.12         $56.50 *Overhead                         Machine depreciation         $270,000                 Set-up advertise         2,688                 Receiving         20,000                 Materials handling         200,000                 Engineering         100,000                 Packing and shipping         60,000                 Maintenance         30,000                 Total crash         $682,688                 Total take labor = 9,725 hours x $16 = $155,600 Overhead rate = 682,688 / 155,600 = 439% Question 2.         Estimated voice marge for point of intersections         Valves         Pumps         Flow Controllers Revenue         $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 labor party is Variable (case says only direct strong is short-run variable). Run 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.         Revised Product Unit costs per to a greater extent Modern View         Valves         Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 Material connect 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 shot for checking my answers. I recommend this strain to anyone who has to do a musical theme or turn in the calculations to this case. Being in a MBA platform consumes a serving of time and demands lots of unexpressed work. It helps when in that location are tools and friends at your disposal. Anyone looking to moreover their education should take in joining this community. If you want to entrance a full essay, be in it on our website:
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