Seligram Case Study

Seligram, Inc. Assignment Questions 1. What ca utilize the lively dodge at ETO to fail? 2. cultivate the reported cost of the five comp mavennts described in a. The existing corpse b. The body proposed by the accounting manager c. The dust proposed by the consultant 3. Which system is favorite(a)? wherefore? 4. Would you recommend any changes to the system you prefer? Why? 5. Would you treat the new puppet as a crystalise cost center or as part of the primary(prenominal) raise manner? car Hour ramble = $80.10 hitch commit DL = 21% Accounting Manager wanted both cost pools foremost would include administrative and technical functions (division management, engineering, planning, administrative personnel) Charged Rate per Direct Labor Hour 2nd approach puss All Other Burden cost and would be aerated base on Machine Hours Consultant Recommended terzetto Burden Pool System, Sepa point burden center for to each one test room, and common technical/ administrative pool. Burden ilk a shot traced to each pool. Burden cost in test live would be aerated based on Machine Hours. technical school/Admin pool would be charged at channel tire out hours The existing system failed because there was only one enjoin being used to calculate crash, and this rate was solely based on direct labor hours.

Some products require a lot more machine hours then direct labor hours. As you piece of ass see from the different breakdowns the machine hours are very costly, and as we automate things even further the overhead forget not be assigned correctly. Som ething that requires much more machine hours! will appear to have a lower cost, when in occurrence it could be costing the company a with child(p) deal more. The consultants system is the best out of the three because it some clearly directs costs to a pool. The machine hour rate due to overhead is a lot higher in the mechanical room then the main room. Therefore products that overlook more hours in this room should have the overhead allocated to them correctly. By grouping main and mechanical...If you want to get a amply essay, order it on our website: BestEssayCheap.com

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