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Date Submitted: 12/30/2012 11:22 PM
EM 501
Financiaı and Ma.agement AcGounting
casestudy
You can work in
g.oupsofthree!
Due on January
Z 2013
Dulan Decorations ln.. is a nation' eade. in the businğ$ of produ.ing glass bblew e and slmilar
produc. The mmpanys oniy manufadurine fa.i itv is lo.ated ]n B le.ik' and the p.oducts otreĞd are:
plicğjeting pıocedule forthe prodUds n simpyto invenigateihe prices ofsim]lar prod0G in the
ma*et and set the prlces accordingy. Asthe new coitoller emp oyed byihe firmi you wonder irrhe
prices ftt by the saes depadment rere suffi.ieni to ensr.e that lhe individua produ.t ines wer
profitable. Thi0kins that it might be helpful, you get one ofyou. anaryns to p.epare a $hedule.f the
fadon/s aonuaü ovelhead cosis for the bn year of opelations:
The
100 000
the
sso.nrd dired
maierial
ln a series of meeringr with the manufadurins depanme.t, your aialv{ colected the lollowins
.
.
while a lrhree produds are produ.ed on the same p.odudio. ircs, rpe.ntyghses undeRenl an
additional painting p.oce$' ]i the specialty.painiing depadmenl, 24 ful]y ut]lizğd wo es hand
painted designson each specialEslass
nrormaton.esardinalastyea/sorodudion:
Medium colored s
a$
ıilgğ.ooredspe.'alty
aldi'g 'lel lo
/'o{'
Şo0o0o
Numberorcunome6
Tota
oiredlabolcoİs
s$,zm
\ plantcap..'\ ürfd
.
s9r,6oo 5343,r0o
sszo,ooo
N/A
Plant administttion cons are the mosr probrematn in decidins howto atocate and
vearprantadministration.onsand otherdata
Jot ow:
Ending Plant Numbe.of
cosr PeEonne cu{ome6
nv
5300,000
Se0,o00
rora
Dired
raborco*
ss20,000
515,000
295,000
1100
50,o00
r15
histori.i five.
500,000
%ptant
1.
perunitand per box cost of ea.h p@dud byatto.atins oveftead to the podu* based on
rhe numberofünitsofpİod0ft produced. comment on the pbfitabilitY of each produd line. AG0e
wh.therrhe arlocario.of ove.head osingthn merhod is.eaenabte.
2.
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