Tijuana Bronze Machining: Teaching Commentary

OVERVIEW This is a basic show typesetters case in Activity-Based Costing (ABC) and Activity-Based concern (antiballistic missile). There is enough mellowness to the fact-situation to create a non-trivial calculational controversy for students without taking the case beyond an introductory level. Also, the business backc hazardh for the calculations is rich enough to stand up good discussion on the managerial implications. I use Tijuana bronze as the introductory case on ABC/ABM in the required managerial accounting course at Tuck and at Babson. The eightsome assignment questions force students to manner of speaking the ABC calculations and the ABM managerial implications. Answers to the assigned questions are shown below. Question 1.          product Costs per unit - modern System Valves          Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 govern poke         4.00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct comprehend $)                            Standard unit address         $37.56         $63.12         $56.50 *Overhead                            Machine depreciation         $270,000                   Set-up comprehend         2,688                   Receiving         20,000                   Materials handling         200,000                   Engineering         100,000                   Packing and shipping         60,000                   Maintenance         30,000                   Total command processing overhead time         $682,688                   Total take labor = 9,725 hours x $16 = $155,600 Overhead rate = 682,688 / 155,600 = 439% Question 2.         Estimated plowshare marge for yields          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 advertize is Variable (case says only directly 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 more(prenominal) Modern View          Valves          Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 Material relate 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 light beam for checking my answers. I recommend this leaven to anyone who has to do a musical composition or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of grueling work. It helps when in that location are tools and friends at your disposal. Anyone looking to promote their education should take in joining this community. If you want to appropriate a full essay, espouse in it on our website: Orderessay

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