REQUIRED 3 ONLY

Castle Machine Company, Inc. operates in manufacturing of picture framing machines. It produces four types of machines (A. B, C, and D). Machines are produced in standard specifications and as per customers' requirements. The materials required to manufacture those machines are purchased from subcontractors and suppliers. The assembly of all of these parts is the main activity of the company. The company works in a traditional way and does not employ Activity Based Management (ABM) practice presently, the process objective is to providing more value to customers by giving products with reduced cost. Toward employing the activity-based management (ABM), Castle Machine Company, Inc. provides the following information: The major activities done before the point of marketing and distribution are: A- Purchasing B-Assembling C- Inventorying D- Inspection E- Engineering support F- Personnel support G- Material handling (Movements among the processes) The total cost of each activity for the month: The volume of cost driver for the month: The labor hours are allocated to assembling, engineering support, personnel support, and Miscellaneous activities (82,80,470, and 520 respectively). Use the above information to fill the following table: Required 2 (2 Mauks) Is the total cost of each of the above activities is a traceable or a non-traceable cust to the four types of picture framing machines? Justify your answer The technical investigation of the above activities stated that all activities are value -added except inventorying, inspection, and material handling. In addition, the management decided to focus the improvement efforts to reduce the costs on the most critical activities using the cost weight (Percentage) criterion for each activity. Required 3 (4 Marks) Based on the cost weight (Percentage) criterion, complete the following report: Although it is ideal to eliminate all the non-value-added activities, only top two critical non-value-added activities have been focused for improvement. Benchmarking is the preferable approach from the management side to improve not eliminate the top two critical non-value -added activities. Benchmarking includes comparing the activities of the company with the best practices followed by other companies in the industry/ or competitors. Castle Machine Company, Inc. operates in manufacturing of picture framing machines. It produces four types of machines (A. B, C, and D). Machines are produced in standard specifications and as per customers' requirements. The materials required to manufacture those machines are purchased from subcontractors and suppliers. The assembly of all of these parts is the main activity of the company. The company works in a traditional way and does not employ Activity Based Management (ABM) practice presently, the process objective is to providing more value to customers by giving products with reduced cost. Toward employing the activity-based management (ABM), Castle Machine Company, Inc. provides the following information: The major activities done before the point of marketing and distribution are: A- Purchasing B-Assembling C- Inventorying D- Inspection E- Engineering support F- Personnel support G- Material handling (Movements among the processes) The total cost of each activity for the month: The volume of cost driver for the month: The labor hours are allocated to assembling, engineering support, personnel support, and Miscellaneous activities (82,80,470, and 520 respectively). Use the above information to fill the following table: Required 2 (2 Mauks) Is the total cost of each of the above activities is a traceable or a non-traceable cust to the four types of picture framing machines? Justify your answer The technical investigation of the above activities stated that all activities are value -added except inventorying, inspection, and material handling. In addition, the management decided to focus the improvement efforts to reduce the costs on the most critical activities using the cost weight (Percentage) criterion for each activity. Required 3 (4 Marks) Based on the cost weight (Percentage) criterion, complete the following report: Although it is ideal to eliminate all the non-value-added activities, only top two critical non-value-added activities have been focused for improvement. Benchmarking is the preferable approach from the management side to improve not eliminate the top two critical non-value -added activities. Benchmarking includes comparing the activities of the company with the best practices followed by other companies in the industry/ or competitors