Destin Brass Products Co. Date: 21 January 2012 Group ES3-3 - Suba Sivandran Established in 1984‚ Destin Brass Products Co. had grown to become a significant player in the industry of manufacturing water purification equipment. By identifying a market for water purification valves‚ Destin Brass quickly built brand awareness and a customer base. Destin Brass developed propriety manufacturing techniques and had a deep understanding of working with brass. This competitive advantage led
Premium Cost accounting
Destin Brass Products Co. Case Study Destin Brass Products Co. has been established and grown to produce valves (24% of the company revenue)‚ pumps (55% of the company revenue)‚ and flow controllers (21% of the company revenue). This paper will illustrate the recommended solutions for the management of the company that are trying to evaluate the competitive trends of the market for the mentioned products‚ and trying to start new strategies to deal with these trends. Finance and accounting‚ as mentioned
Premium Cost accounting Costs Cost
Destin Brass Products Co. 1) Estimated Product costs per unit: Number of Units 7500 12500 4000 Valves Pumps Flow Controllers Material Overhead Receiving $600.00 $3‚800.00 $15‚600.00 Materials Handling $6‚000.00 $38‚000.00 $15‚600.00 Manufacturing Overhead Packing and Shipping $1‚800.00 $13‚800.00 $43‚800.00 Engineering $20‚000.00 $30‚000.00 $50‚000.00 Maintenance $10‚500.00 $17‚400.00 $2‚100.00
Premium Cost Cost accounting Units of measurement
Problem Statement: Destin Brass president Roland Guidry is concerned with the competitive trends of the company products. He and his staff are worried that company profits are falling in regards to these competitive problems. Analysis: Destin Brass Company manufactures three items dealing with water purification systems: valves‚ pumps‚ and flow controllers. The company has been seeing some problems dealing with competition within some of the product markets they produce. Ronald Guidry had
Premium Cost accounting Cost Marketing
Destin Brass Products Co. Case Report Q1: When Activity Based Costing (Weetman‚ 2010‚ p. 85) is used to calculate the monthly cost per unit‚ two types of costs are distinguished. Firstly the direct costs‚ consisting of the direct manufacturing costs and the run labor costs‚ and secondly the indirect costs‚ consisting of the machine usage costs or depreciation and the overhead costs. These costs allow us to calculate the monthly cost per unit‚ see Appendix 1 for the Excel file
Premium Cost accounting
activity-based costing method is very different from the existing standard unit costs and the revised unit costs. Exhibit 3 uses the traditional cost allocation system‚ which allocates all costs based on measures of volume. In the standard unit costs‚ Destin Brass uses direct labor as the only cost driver‚ which rarely meets the cause-effect standard wanted in cost allocation. Exhibit 4 is similar to exhibit 3‚ but instead‚ 4 uses materials and machine hours as the cost driver instead of just direct labor
Premium Cost Cost accounting Costs
Destin Brass Products Co. Case 1. Cost: Material $22 Set-up Labor $0.48 Direct Labor $6.4 Machine Depreciation (0.2 hours
Premium Costs Cost Cost accounting
Destin Brass Products Destin Brass produces three products used for water purification systems: valves‚ pumps and flow controllers. They are seeing high competition in the pumps market while competitors are reducing the prices on pumps. Because they do not have any design advantages to their product‚ they feel they need to follow the market and lower their prices as well. A meeting was held to discuss the declining profits and a proposal to change their overhead allocation method was proposed
Premium Iron Metal Oxygen
Destin Brass Products Problem: - The Company is producing 3 major products – Valve‚ Pump and Flow Controller. The Company is concerned about the price cutting of Pumps going on in the market every month. It is also surprised to see no change in sales of Flow Controller despite 12 ½% increases in prices. Current Scenario: - Currently it is using traditional accounting system‚ Unit of product is charged for material cost‚ labor cost (standard time for labor times the labor pay rate $16 per hour)
Premium Cost Price Cost accounting
Destin Brass Products Co. June 26‚ 2010 CASE ANALYSIS OBJECTIVES The Destin Brass Products Company case analysis focuses on the current accounting practices utilized by the company and its effects on product pricing. Destin’s president‚ Roland Guidry‚ is concerned about the pump market competition dropping prices and his company’s ability to remain competitive‚ yet profitable; since‚ pumps are 55% of Destin’s revenues. At the same time‚ the flow controller market remains seemingly untouched
Premium Cost Costs Cost accounting