Essay About Pic And Flow Controllers

Wilkerson Case Study on Costing
[pic 1][pic 2]AnalysisTraditional Costing System Valves (in $)Pumps (in $)Flow Controllers (in $)Production(units)7500125004000 per unitTotalper unittotalper unittotalDirect Labor Cost107500012.51562501040000Direct Material Cost16120000202500002288000Manufacturing Overhead (@300%)3022500037.546875030120000Total(in$)564200007087500062248000Activity Based CostingValves (in $)Pumps (in $)Flow Controllers (in $)Production(units)7500125004000per unittotalper unittotalper unittotalDirect Labor Cost107500012.51562501040000Direct Material Cost161200002025000022880001. Machine Related Expenses1511250015187500936000Rate = (336000/11200) = 30 per hr2. Setup Labour0.33333333325001125006.2525000Rate = (40000/160) = 250 per production run3. Receiving and Production Control1.5112504.55625028.125112500Rate = (180000/160) = 1125 per run4. Engineering2.666666667200002.43000012.550000Rate = (100000/1250) = 80 per hr5. Packaging and Shipping0.66666666750002.83500027.5110000Rate = (150000/300) = 500 per shipmentTotal Cost46.1666666734625058.2727500115.375461500