Trololo

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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