Huron Automotive Company

Topics: Cost accounting Pages: 6 (566 words) Published: February 20, 2012
Case 1. Huron Automotive Company

Question 1. Current Method vs. First Proposal vs. Revised Proposal

|Current Method |55.96 |$/hour |  |  | |Department: |  |CS-29 Injectors (per batch |Spare Parts for Inventory |Work for Other Divisions (per| | | |of 100) |(per typical month) |typical month) | |Casting/stamping |  | 1,175.16 | 17,011.84 | 37,717.04 | |Grinding |  |  | 671.52 | 15,109.20 | 30,218.40 | |Machining |  | 3,245.68 | 62,395.40 | 120,761.68 | |Custom work |  | | | | | | |- |- |- | |Assembly |  | 1,958.60 | | | | | | |- |- | |Total |  |  | $ 7,050.96 | $ 94,516.44 | $ 188,697.12 |

|Sandy Bond's 1st Proposal |  |  |  | |Department: |  |CS-29 Injectors (per batch |Spare Parts for Inventory |Work for Other Divisions (per| | | |of 100) |(per typical month) |typical month) | |Casting/stamping |  | 1,112.37 | 16,102.88 | 35,701.78 | |Grinding |  |  | 577.68 | 12,997.80 | 25,995.60 | |Machining |  | 5,076.16 | 97,584.80 | 188,868.16 | |Custom work |  | -| | | | | | |- |- | |Assembly |  | 1,406.65 | | | | | | |- |- | |Total |  |  | $ 8,172.86 | $ 126,685.48 | $ 250,565.54 |

|Sandy Bond's Revised Proposal |  |  | |Department: |  |CS-29 Injectors |Spare Parts for Inventory |Work for Other Divisions (per| | | |(per batch of 100) |(per typical month) |typical month) | |Casting/stamping |  | 1,115.52 | 16,148.48 | 35,802.88 | |Grinding |  |  | 561.00 | 12,622.50 | 25,245.00 | |Machining |  | 5,017.00 | 96,447.50 | 186,667.00 | |Custom work |  | - | | | | | |...
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