OVERVIEW This is a basic font in Activity-Based Costing (ABC) and Activity-Based take care (antiballistic missile). There is enough richness to the fact-situation to create a non-trivial calculational trash for students without taking the case beyond an preceding level. Also, the business background knowledge for the calculations is rich enough to support good discussion on the managerial implications. I use Tijuana Bronze as the introductory case on ABC/ABM in the call for managerial accounting course at Tuck and at Babson. The viii assignment questions force students to address the ABC calculations and the ABM managerial implications. Answers to the assigned questions are shown below. Question 1.         Product cost per building block - contemporary System Valves         Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 cypher poke         4.00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct craunch $)                         Standard unit cost         $37.56         $63.12         $56.50 * disk overhead                         Machine depreciation         $270,000                 Set-up labor         2,688                 Receiving         20,000                 Materials manipulation         200,000                 Engineering         100,000                 Packing and shipping         60,000                 Maintenance         30,000           Â!      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 Contribution marge for Products         Valves         Pumps         Flow Controllers gross         $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 crowd is Variable (case says only direct strong is short-run variable). buy the farm 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.         revise Product Unit costs per More Modern becharm         Valves         Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 Material Related 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 pawn for checking my answers. I recommend this essay to anyone who has to do a write up or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of solid work. It helps when in that location are tools and friends at your disposal. Anyone looking to push their education should take in joining this community. If you want to define a full essay, come in it on our website:
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