costs to estimate product cost for valves‚ pumps‚ and flow controllers. Exhibit 1 shows the estimated product costs for vales ($37.70)‚ pumps ($48.79)‚ and flow controller ($100.76) using the information provided in the Destin Brass case study. Exhibit 1: Estimated Product Costs for Valves‚ Pumps‚ and Flow Controllers 2. Compare the estimated costs you calculate to existing standard unit cost (Exhibit 3) and the revised unit cost (Exhibit 4). What causes the different product costing methods
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Destin Brass Products Co Case 1. Use the overhead cost activity analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for valves‚ pumps and flow controllers. We calculated the products costs for the three products using various overhead components. 2. Compare the estimated costs you calculate to existing standard unit costs (Exhibit 3) and the revised unit costs (Exhibit 4). What causes the different product costing methods to produce such different results
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In the analysis we focus on the company Destin Brass‚ their competitors have been reducing the price and Destin Brass has not been able follow. We address this issue and by comparing activity based costing with the cost systems they already using‚ looking for a way in which they can be more competitive on the market. Cover page Table of Content 1. Use the Overhead Cost Activity Analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for valves‚ pumps‚ and flow controllers
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Destin Brass Products Co. MEMORANDUM To: Senior Management of Destin Brass From: Consulting Team 2 Subject: Is the company costing system enhancing profitability? Date: 10/18/11 ____________________________________________________________ _____________________________________ After reviewing the exhibits provided to us from Peggy and Scott‚ we have created an Activity-Based Costing for Destin Brass’s Valve‚ Pumps and Flow Controllers in efforts to determine whether the company’s
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Case Study: Destin Brass Products Co. Hsien-Da Lin 003253093 1. By using activity-based costing method‚ we can reallocate the overhead costs into three product lines based on four activities‚ which are numbers of used set up labor hours‚ percentage of transaction and machine usage‚ and numbers
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Destin Brass is a large manufacturer of water purification equipment. Valves‚ pumps and flow controllers are three main products they make. The management was bothering by the rapid competition of valve market‚ wondering why their competitors can offer a lower sale price than theirs. In the end‚ they came up with the conclusion the cost allocation method was not accurate‚ and it led to the inappropriate pricing strategy. The company uses three methods to compute the unit cost of each product—traditional
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Destin Brass Products Co. INTRODUCTION Destin Brass Products Co.‚ was facing competition in brass pumps market due to low prices set by competitors. The company started in 1984 used to manufacture only valves initially but started brass pumps and flow controllers because they required the same manufacturing skills. Valves represented 24% of the total revenue of the company and had a gross margin of 35%. Destin was manufacturing 7500 units per month Pumps (55% of the revenues) also
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alloy. Brass has higher malleability than copper or zinc. In general‚ they have good strength and corrosion resistance‚ although their structure and properties are a function of zinc content. The relatively low melting point of brass (900 to 940°C‚ depending on composition) and its flow characteristics make it a relatively easy material to cast. By varying the proportions of copper and zinc‚ the properties of the brass can be changed‚ allowing hard and soft brasses. The density of brass is approximately
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Destin: A Philosophy Thesis: The photograph of my family and I in Destin‚ Florida marks the embarkment of a new journey in my life‚ reminding me that my past is gone‚ reminding me of the importance of family‚ and reminding me how the future awaits a better life in order to accomplish Amit Kalantri’s viewpoints of a photo. Introduction I. The photo is in remembrance of how my past is gone. A. How my life was before my dad’s remarriage. 1. How I lived with my biological mother throughout
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Product Orientation to Solution Orientation: A Journey Most industrial goods manufacturers and other organizations operating in B2B markets currently face testing times owing to bad economic conditions. While the economic downturn threatens the growth of a lot of these B2B businesses‚ other factors have also emerged that have contributed to this situation of the “perfect storm”. Increased price competition from the traditional low-labour countries‚ increased product quality levels from these same
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