Kyle Birrell MBA 6120 Destin Brass Products Co. 1. first principle courting| | make ups| Valves| Pumps| meld Controllers| Cost Driver| units| | 7500| 12500| 4000| | Material Cost| | 16.00| 20.00| 22.00| Material| figure 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| rudiment| Packing/Shipping| 60000| 0.24| 1.10| 10.95| ABC| Maintenance| 30000| 1.40| 1.39| 0.53| ABC| | | | | | | | social unit Cost| 37.81| 48.82| 100.49| | 2. beat Unit Cost traditionalistic| $ 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 observable divergences in separ ately of the costing methods. Each of the traditional methods experience a iodin cost driver to estimate and portion the overhead to separately product.

The difference between the first and the rewrite traditional estimates comes from utilize a opposite cost driver for distri moreoverively method. The ABC method can use dual cost drivers since diametrical costs can be operate 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 thi s method, their loot margin leave alone c! hange for two of the threesome products, namely the pumps and flow controllers. The will be making a much higher profit margin on the pumps, but will need to do something to reduce costs on the flow controllers in ordinance to make money. There biggest outlay is the handling cost for the controllers. 4. There should be no difference in the net income of the company as the...If you want to recrudesce a full essay, rewrite it on our website:
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