Tijuana Bronze Machining Case Study

Tijuana Bronze Machining

Question 1

material labor mfg oh total cpu set up hours total set up cost mfg oh set up total mfg oh valves $                16.00 $                  4.00 $                17.55 $                37.55 pumps $                  20.00 $                     8.00 $                  35.10 $                  63.10 controllers $                   22.00 $                    6.40 $                   28.08 $                   56.48

8 40 120 $              128.00 $                640.00 $            1,920.00 $      680,000.00 $          2,688.00 $      682,688.00

mfg oh is assigned to production on basis of production‐run labor costs: run labor hours 9725 total run labor cost $      155,600.00 mfg oh rate 439% of direct labor

Question 2

sales/unit variable expenses:   materials   labor contribution margin p/u valves pumps controllers $                57.78 $                  81.26 $                   97.07 $                16.00 $                  20.00 $                   22.00 $                  4.00 $                     8.00 $                    6.40 $                37.78 $                  53.26 $                   68.67

Question 3

material labor material oh set up  all other oh total cpu $                16.00 $                  4.00 $                  7.69 $                  0.02 $                21.30 $                49.00 $                  20.00 $                     8.00 $                     9.61 $                     0.05 $                  21.30 $                  58.95 $                   22.00 $                    6.40 $                   10.57 $                    0.48 $                    8.52 $                   47.97

material oh: receiving & handling allocated based on cost of product: receiving & handling $      220,000.00 product cost $      458,000.00 material oh rate 48% set up labor assigned directly to each product line

all other oh based on machine hours: all other oh cost machine hours oh/hour...