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Need help with the Tijuana Bronze Machining Case, I'm finding different answers. Attached are the two documents. Please help with all 9 questions. Tijuana Bronze
Need help with the Tijuana Bronze Machining Case, I'm finding different answers. Attached are the two documents. Please help with all 9 questions.
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 recommendationsStep by Step Solution
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