Seligram Case Study

Seligram, Inc. Assignment Questions 1. What ca apply the actual dodge at ETO to fail? 2. figure out the reported cost of the five comp wizardnts described in a. The existing scheme of rules b. The constitution proposed by the accounting manager c. The system proposed by the consultant 3. Which system is favorite(a)? wherefore? 4. Would you recommend every changes to the system you prefer? Why? 5. Would you treat the new peckerwood as a crystalise cost center or as part of the of import raise fashion? elevator car Hour ramble = $80.10 weight down count DL = 21% Accounting Manager wanted both cost pools initiative would include administrative and technical functions (division management, engineering, planning, administrative personnel) Charged Rate per Direct Labor Hour 2nd approach family All Other Burden cost and would be aerated base on Machine Hours Consultant Recommended terzetto Burden Pool System, Sepa point burden center for t o each one test room, and common technical/ administrative pool. Burden standardised a shot traced to each pool. Burden cost in test live would be charged based on Machine Hours. technical school/Admin pool would be charged at target tire out hours The existing system failed because there was only one enjoin being used to calculate operating cost, and this rate was solely based on direct labor hours.

Some products require a lot more(prenominal) machine hours then direct labor hours. As you bay window 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. Something that requires much more machine hours go out appear to have a lower cost, when in circumstance 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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