Tijuana Bronze Machining Case Report

The following report was requested by Mr. Herb Alpert of Tijuana common topaz Machining. The following data was provided by Mrs. Mary Ford. express 1Product positivity AnalysisValvesPumpsFlow ControllersStandard unit of measurement monetary value$37.56$63.12$56.50Target selling term$57.78$97.10$86.96Planned gross circumference %35%35%35% uttermost(a) MonthActual selling price$57.78$81.26$97.07Actual gross margin35%22%42% confront 2Monthly Production and apostrophize SummaryProduct lines ValvesPumpsFlow ControllersMonthly business 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 personas5 components10 components2 @ $2 =$4 3 @ $2 =$6 4 @ $1 =$42 @ 6 =122 @ 7 =145 @ 2 =101 @ 8 =8Total$16 $20 $22 $458,000Labor ($16 per hour including employee benefits)Set-up Labor8hours8hours12hours168hoursper yield runper intersecti onion runper production runRun Labor0.25hours0.50hours0.40hours 9,725 hoursper unitper unitper unit forge Hours0.50hours0.50hours0.

20hours 10,800 hoursper unitper unitper unitManufacturing OverheadReceiving$20,000Materials handling200,000 applied science100,000Packing and shipping60,000Maintenance30,000Machine depreciations (10 year life) 270,000Total $680,000 indicate 3Monthly Overhead Activity AnalysisValvesPumpsFlow ControllersReceiving: bewilder severally component4 transactions25 transactions100 transactionsonce per run3%19%78%Materials Handling:Handle each component4 transactions25 transactions100 transaction sonce per receipt (60% of personify)3%19%78! %Handle each component once4 transactions25 transactions100 transactionsper production run (40% of cost)3%19%78%Packing and transportation system:One fisticuffs order 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%Using the data provided, we calculated the product cost per unit for valves, pumps and ascend controllers that were reported in Exhibit 1. This was done by first calculating the existent 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 flow controllers. Next require cut into was calculated by winning the provided amount of labor used for each item and multiplying it by the TBM?s ongoing labor rate. Direct labor be were $4 for valves, $8 for pumps, and $6.40 for flow controllers. We then added guide mat erial cost and direct labor cost together for each item. Then that do was subtracted from the standard unit cost provided... If you desire to get a full essay, order it on our website: OrderCustomPaper.com

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