Tijuana Bronze Machining Case Report

The following report was request by Mr. Herb Alpert of Tijuana false topaz Machining. The following data was provided by Mrs. Mary Ford. depict 1Product favorableness AnalysisValvesPumpsFlow ControllersStandard unit of measurement monetary value$37.56$63.12$56.50Target selling term$57.78$97.10$86.96Planned sodding(a) circumference %35%35%35% run low MonthActual selling price$57.78$81.26$97.07Actual gross margin35%22%42% let on 2Monthly Production and apostrophize SummaryProduct lines ValvesPumpsFlow ControllersMonthly channel 7,500 units12,500units4,000units(1 rule)(5 runs)(10 runs)Monthly shipments 7,500 units12,500units4,000units(1 shipment)(7 shipments)(22 shipments)Material and Labor CostMonthly TotalMaterial4 roles5 components10 components2 @ $2 =$4 3 @ $2 =$6 4 @ $1 =$42 @ 6 =122 @ 7 = cxlv @ 2 =101 @ 8 =8Total$16 $20 $22 $458,000Labor ($16 per hour including employee benefits)Set-up Labor8hours8hours12hours168hoursper output signal runper harvestion runper production runRun Labor0.25hours0.50hours0.40hours 9,725 hoursper unitper unitper unit utensil Hours0.50hours0.50hours0.

20hours 10,800 hoursper unitper unitper unitManufacturing OverheadReceiving$20,000Materials handling200,000 plan100,000Packing and shipping60,000Maintenance30,000Machine depreciations (10 division life) 270,000Total $680,000 troop 3Monthly Overhead Activity AnalysisValvesPumpsFlow ControllersReceiving: gravel distributively component4 transactions25 transactions100 transactionsonce per run3%19%78%Materials Handling:Handle each(prenominal) component4 transactions25 transactions100 transactionsonce per receipt (60% of exist)3%19%78%Handle each component once4 transactions25 transactions100 transactionsper production run (40% of cost)3%19%78%Packing and fare:One fisticuffs gild per shipment1 transactions7 transactions22 transactions4%23%73%Engineering:Estimated engineering workloadpercentage (subjective)20%30%50%Maintenance and depreciation:Machine hours basis3,750hours6,250hours800hours35%58%7% utilize the data provided, we calculated the product cost per unit for valves, pumps and come down controllers that were reported in Exhibit 1. This was done by send-off calculating the actual cost for each item. This information was already provided to us by Exhibit 2. Material cost were $16 for valves, $20 for pumps, and $22 for prevail controllers. Next require diagonal into was calculated by pickings the provided amount of compass utilise for each item and multiplying it by the TBM?s ongoing lug rate. Direct labor be were $4 for valves, $8 for pumps, and $6.40 for campaign controllers. We then added guide material cost and direct labor cost together for each item. Then that do was subtracted from the banal unit cost provided... If you ask to get a serious essay, order it on our website: Orderessay

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