I am working on a case study of Tijuana Bronze machining

I have two questions I have having trouble with. They are question 7 and 8. I have answered all of the others with some help from your site.

Is there anyone who can help me with the rest?

Tijuana Bronze Machining Case questions 1. 2. 3. 4. 5. 6. 7. 8. 9. Use the information in Exhibit 2 to calculate the EXACT product costs PER UNIT for valves, pumps and flow controllers that are reported in Exhibit 1, Show your calculation. This would include a detailed presentation of the predetermined overhead rate used in the calculations. No change This is using Mary Ford's comments on a \"more modern view\" that uses a material related overhead, as well as additional overhead allocations. All products should have Per Unit Costs calculated and show all overhead computations. ABC method -show Per Unit and Total costs for all three products. No Change Prepare table that compares the results for the 3 products. You should show the Standard Cost, Gross Margin, and Gross Margin percentage-- Per Unitfor each product. Describe which system you favor and briefly explain your reasoning. You will be doing a more thorough analysis of your recommendations in Question 8. This question is asking about the potential problem with the flow controllers. We have 10 components and 10 runs per month. What are some potential changes (ABM) that we might consider and what are the potential savings? Make some changes and assumptions to some factors and show how there is a potential for savings on this product cost. What recommendations do you have for management regarding all 3 products. Be specific. Support your recommendations with explicit analysis. You should investigate how the firm is doing overall (using the sales and cost estimates given and how your recommendations might change the results. Each product requires discussion of the product (price, market competition, etc) and recommendations for each. This should be detailed and supported by calculations where appropriate. Your case grade is heavily dependent on the quality of your analysis and recommendations for this question. NEW QUESTION - After reviewing the recommendations and discussion, TBM decided to investigate the effects of some changes to the Flow Controllers that could simplify the production process and potentially reduce the cost of this product line. You have been asked to recalculate the cost of Flow Controllers using the following information and report back on the potential results. You should calculate the new per unit cost (only for the Flow Controllers) and give you opinion as to whether you would recommend the changes. Engineering decided to redesign the flow controllers and with the help of a couple key suppliers was able to come up with the following: Flow controllers redesigned to consist of only 4 components costing a total of $20. We would still produce 4000 units, but the number of production runs would be reduced to 5 per monthwhich had a significant impact on the number of material handling transactions (see recalculation below!!). The potential savings in material handling is significantreducing MH costs from $200,000 to $80,000. We would still have 22 shipments. Calculate the potential savings and the effect on the product cost. Remember to check changes in: 1) Flow controllers will now have 20 transactions (4 components x 5 runs) or 41% of the total transactions (Valves 8%, Pumps 51% and Flow controllers 41%), and 2)Setup laborwhat is the effect if we make these changes. Run Labor will also be reduced to 0.25 hours per unit. Discuss your analysis and your recommendations. Exhibit 1 Product Profitability Analysis Standard Unit Cost Target Selling Price Planned Gross margin % Last Month Actual Selling Price Actual Gross Margin Valves $ 37.56 $ 57.78 35% Pumps $ 63.12 $ 97.10 35% $ 57.78 35% $ 81.26 22% $ $ Flow Controllers 56.50 86.96 35% $ 97.07 42% Exhibit 2 Monthly Production and Cost Summary Product Lines Montly Production Monthly Shipments Valves 7,500 Units (1 Run) 7,500 Units (1 Shipment) Material and labor Costs Material 4 Components 2@$2=$4 2 @ 6 = 12 Totals $ Pumps 12,500 Units (5 Runs) 12,500 Units (7 Shipments) Flow Controllers 4,000 Units (10 Runs) 4,000 Units (22 Shipments Monthly Total 5 Components 3@$2=$6 2 @ 7 = 14 16.00 $ 10 Components 4@$1=$4 5 @ 2 = 10 1@8=8 20.00 $ 22.00 $ 458,000.00 Labor ($ 16,00 per hour including employee benefits) Set - up labor 8 hours per 8 hours per 12 hours per production run production run production run Run Labor .25 hours per unit Machine Hours .50 hours per .50 hour per unit unit Manufacturing Overhead Receiving Materials handling Engineering Packing and shipping Maintenance Machine depreaciation (10 Year Life) Total . 50 hours per unit $ $ $ $ $ $ $ 20,000.00 200,000.00 100,000.00 60,000.00 30,000.00 270,000.00 680,000.00 168 hours .40 hours per unit 9,725 hours .20 hours per unit 10,800 hours Exhibit 3 Monthly Overhead Activity Analysis Valves Pumps Flow Controllers 4 Transactions 3% 25 Transactions 19% 100 Tranactions 78% 4 Transactions 3% 25 Transactions 19% 100 Tranactions 78% 4 Transactions 3% 25 Transactions 19% 100 Tranactions 78% 1 Transaction 4% 7 Transactions 23% 22 Transaction 73% 20% 30% 50% 3,750 hours 35% 6,250 hours 58% 800 hours 7% Receiving: Receive each component once per run Materials Handling: Handle each component once per receipt (60% of Cost) Handle each component once per production run (40% of Cost) Packing and Shipping: One packing order per shipment Engineering: Estimated engineering workload percentage (subjective) Maintenance and Depreciation: Machine hours basis Case Questions 1 Valves Total units productions Material Costs Set-up Labor costs Run labor costs machine hours costs Manufacturing overhead Costs Receiving Materials handling Engineering Packing and shipping Maintenance Machine Depreciation Total cost of prduction Per unit cost $ $ $ $ 7500 120,000.00 128.00 30,000.00 60,000.00 $ $ $ $ Pumps 12,500 250,000.00 640.00 100,000.00 100,000.00 $ $ $ $ $ $ $ $ 6,250.00 62,500.00 3,125.00 2,000.00 10,416.67 93,750.00 388,169.67 51.76 $ $ $ $ $ $ $ $ 10,416.67 104,166.67 5,208.33 14,000.00 17,361.11 156,250.00 758,042.78 60.64 Valves Total units production Machine hours Machine Depreciation cost Maintenance cost $ $ 7500 3750 93,750.00 $ 10,416.67 $ Flow Controllers 4000 $ 88,000.00 $ 1,920.00 $ 25,600.00 $ 12,800.00 $ $ $ $ $ $ $ $ 3,333.33 33,333.33 1,666.67 44,000.00 2,222.22 20,000.00 232,875.56 58.22 Pumps Flow Controllers 12500 4000 6250 800 156,250.00 $ 20,000.00 17,361.11 $ 2,222.22 Question 2 Actual Selling Price Per unit cost of production Contribution Margin Valves Pumps Flow Controllers $ 57.78 $ 81.26 $ 97.07 $ 51.76 $ 60.64 $ 58.22 $ 6.02 $ 20.62 $ 38.85 Question 3 Valves Total units production Material cost Set-up labor cost Run labor cost Machine hours costs $ $ $ $ 7500 120,000.00 128.00 30,000.00 60,000.00 $ $ $ $ Pumps 12500 250,000.00 640.00 100,000.00 100,000.00 $ $ $ $ $ $ $ $ 600.00 6,000.00 2,000.00 2,400.00 10,500.00 94,500.00 326,128.00 43.48 $ $ $ $ $ $ $ $ 3,800.00 38,000.00 3,000.00 13,800.00 17,400.00 156,600.00 683,240.00 54.66 Flow Controllers 4000 $ 88,000.00 $ 1,920.00 $ 25,600.00 $ 12,800.00 $ $ $ $ $ $ $ $ Manufacturing Overhead cost: Receiving Materials handling Engineering Packing and shipping Maintenance Machine Depreciation Total cost of production Per unit cost= Total cost/units production 15,600.00 156,000.00 5,000.00 43,800.00 2,100.00 18,900.00 369,720.00 92.43 Question 4/ ABC Method Total units production Selling price per unit Direct Labor cost per hour Direct Material cost per unit Direct costs: Direct Labor cost Direct Material cost Total Direct cost $ $ $ Valves Pumps 7500 12500 57.78 $ 81.26 16.00 $ 16.00 16.00 $ 20.00 Flow Controllers 4000 $ 97.07 $ 16.00 $ 22.00 Total 24000 $ 90,128.00 $ 200,640.00 $ $ 120,000.00 $ 250,000.00 $ $ 210,128.00 $ 450,640.00 $ 40,320.00 $ 88,000.00 $ 128,320.00 $ $ 6,250.00 $ 10,416.67 $ $ 62,500.00 $ 104,166.67 $ $ 31,250.00 $ 52,083.33 $ $ 2,000.00 $ 14,000.00 $ $ 8,166.53 $ 18,180.06 $ $ 73,498.77 $ 163,620.55 $ $ 393,793.30 $ 813,107.28 $ $ 52.51 $ 65.05 $ 3,333.33 33,333.33 16,666.67 44,000.00 3,653.41 32,880.68 262,187.43 65.55 331,088.00 458,000.00 789,088.00 Manufacturing Overhead cost: Receiving Materials handling Engineering Packing and shipping Maintenance Machine Depreciation Total cost of production Per unit cost= Total cost/units production Total units production Production run Total hours Valves 7500 1 5633 Pumps Flow Controllers 12500 4000 5 10 12540 2520 $ 20,000.00 $ 200,000.00 $ 100,000.00 $ 60,000.00 $ 30,000.00 $ 270,000.00 $ 1,469,088.00 Question 5 Total units production Selling price per unit Direct Labor cost per hour Direct Material cost per unit Sales revenue Direct costs: Direct Labor cost Direct Material cost Total Direct cost Total Overhead cost Total cost Net Income/ Gross Margin $ $ $ $ Valves 7500 57.78 16.00 16.00 433,350.00 $ $ $ $ Pumps 12500 97.10 16.00 20.00 1,213,750.00 $ $ $ $ $ $ 90,128.00 120,000.00 210,128.00 183,665.30 393,793.30 39,556.70 $ $ $ $ $ $ 200,640.00 250,000.00 450,640.00 362,467.28 813,107.28 400,642.72 Flow Controllers Total 4000 24000 $ 86.96 $ 16.00 $ 22.00 $ 347,840.00 $ 1,994,940.00 $ $ $ $ $ $ 40,320.00 88,000.00 128,320.00 133,867.43 262,187.43 85,652.57 $ 331,088.00 $ 458,000.00 $ 789,088.00 $ 680,000.00 $ 1,469,088.00 $ 525,852.00 Question 6 Total units production Standard Selling price per unit Sales revenue Direct costs: Direct Labor cost Direct Material cost Total Overhead cost Total cost Gross Margin Gross Margin percentage Per Unit Valves Pumps Flow Controllers Total 7500 12500 4000 24000 $ 57.78 $ 97.10 $ 86.96 $ 433,350.00 $ 1,213,750.00 $ 347,840.00 $ 1,994,940.00 $ 90,128.00 $ $ 120,000.00 $ $ 183,665.30 $ $ 393,793.30 $ $ 39,556.70 $ 9% 200,640.00 250,000.00 362,467.28 813,107.28 400,642.72 33% $ $ $ $ $ 40,320.00 88,000.00 133,867.43 262,187.43 85,652.57 25% $ 331,088.00 $ 458,000.00 $ 680,000.00 $ 1,469,088.00 $ 525,852.00 Question 9 Recalculate the Cost of Flow Controllers Old New Total units production 4000 4000 Material cost $ 88,000.00 $ 80,000.00 Set-up labor cost $ 1,920.00 $ 960.00 Run labor cost $ 25,600.00 $ 16,000.00 Machine hours costs $ 12,800.00 $ 12,800.00 Manufacturing Overhead cost: Receiving $ 15,600.00 $ 15,600.00 Materials handling $ 156,000.00 $ 32,800.00 Engineering $ 5,000.00 $ 5,000.00 Packing and shipping $ 43,800.00 $ 43,800.00 Maintenance $ 2,100.00 $ 2,100.00 Machine Depreciation $ 18,900.00 $ 18,900.00 Total cost of production $ 369,720.00 $ 227,960.00 Per unit cost= Total cost/units production $92.43 $56.99 Saving $141,760