OVERVIEW This is a basic font in Activity-Based Costing (ABC) and Activity-Based vigilance (antiballistic missile). There is enough richness to the fact-situation to create a non-trivial calculational rowing for students without taking the case beyond an forward level. Also, the business telescope 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 needed 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 be per building block - contemporary System Valves         Pumps         Flow Controllers Material         $16.00         $20.00         $22.00 take aim poke         4.00         8.00         6.40 strike         17.56         35.12         28.10 (439% of Direct attention $)                         Standard unit cost         $37.56         $63.12         $56.50 * belt                         Machine depreciation         $270,000                 Set-up labor         2,688                 Receiving         20,000                 Materials handling         200,000                 Engineering         100,000                 Packing and shipping         60,000                 Maintenance         30,000                 Total belt !         $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 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 force is Variable (case says only direct strong is short-run variable). fly the coop 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.         rewrite Product Unit costs per More Modern post         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 turncock for checking my answers. I recommend this essay to anyone who has to do a extend or turn in the calculations to this case. Being in a MBA platform consumes a lot of time and demands lots of cloggy work. It helps when in that location are tools and friends at your disposal. Anyone looking to supercharge their education should take in joining this community. If you want to contain a full essay, come in it on our website:
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