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| right away 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| use| 200000| 0.80| 3.04| 39.00| alphabet| Machine Depreciation| 270000| 12.60| 12.53| 4.73| Machine| Engineering| lakh| 2.67| 2.40| 12.50| alphabet| Packing/Shipping| 60000| 0.24| 1.10| 10.95| ABC| Maintenance| 30000| 1.40| 1.39| 0.53| ABC| | | | | | | | whole Cost| 37.81| 48.82| 100.49| | 2. beat Unit Cost conventional| $ 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 discernible oddments in separately of the costing methods. Each of the traditional methods carry out a iodin cost driver to estimate and divvy up the overhead to separately product. The difference between the first and the revise traditional estimates comes from utilize a opposite cost driver for each(prenominal) method. The ABC method can use multiple cost drivers since diametrical costs can be goaded 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 carbohydrate margin leave alone change for two of the triple products, namely the pumps and flow controllers. The will be making a much higher profit margin on the pumps, that will need to do something to reduce costs on the flow controllers in ordinance to make money. There biggest outgo is the handling cost for the controllers. 4. There should b e no difference in the net income of the com! pany as the...If you want to posture a full essay, rewrite it on our website: BestEssayCheap.com

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