# Cases in Cost Management

## Quiz 31 :Tijuana Bronze Machining Tbml

Question Type
Use the information in Exhibit 2 to calculate the product costs per unit for valves, pumps and flow controllers that are reported in Exhibit 1. Show your calculations.
Free
Essay

Calculate the product cost per unit:
Product cost per unit : It is the material cost, labor cost, and the overheads that are incurred on a single unit of the product.
The product cost per unit using Exhibit 2 can be calculated using the following spreadsheet:
Thus, the unit cost calculated for valves is $37.56 , a pump is$63.12 , and a flow controller is $56.50. Tags What is your estimate of the current "contribution margins" for the three products. Show your calculations and explain them. Free Essay Answer: Answer: The estimated contribution margin for the three products can be calculated using the following strategy: Contribution margin: It is the difference between the revenue and the variable cost. Referring to the exhibits 1 and 2 the contribution is calculated as below: The contribution for valves is calculated as$37.76 , for pumps it is $53.21 and flow controller is$68.19.

Tags
Use the information in Exhibit 2 to calculate the revised product costs mentioned by Mary Ford on page 3.
Free
Essay

Calculate the revised product costs using the following spreadsheet:
The revised standard costs for valves, pumps and flow controllers are calculated as
and
, respectively.

Tags
Use the information in Exhibits 2 and 3 to calculate product costs for valves, pumps, and flow controllers under an "ABC" approach (Activity Based Costing).
Essay
Tags
If, in the following month, quantities produced and sold, activities, and costs were all at standard, how much higher or lower would the reported net income be under the ABC system than under the present system Why
Essay