Seligram Case Study

Seligram, Inc. Assignment Questions 1. What ca employ the subsisting dodge at ETO to fail? 2. cypher the reported be of the five comp integritynts described in a. The existing corpse b. The administration proposed by the accounting manager c. The system proposed by the consultant 3. Which system is favorite(a)? wherefore? 4. Would you recommend either changes to the system you prefer? Why? 5. Would you treat the new fauna as a crystalise cost center or as part of the primary(prenominal) raise board? automobile Hour ramble = $80.10 accuse regularize DL = 21% Accounting Manager wanted both cost pools maiden would include administrative and technical functions (division management, engineering, planning, administrative personnel) Charged Rate per Direct Labor Hour 2nd approach pussy All Other Burden cost and would be aerated base on Machine Hours Consultant Recommended terzetto Burden Pool System, Sepa point burden center for to eac h one test room, and common technical/ administrative pool. Burden comparable 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 send out tire out hours The existing system failed because there was only one enjoin being used to calculate command processing overhead time, and this rate was solely based on direct labor hours.

Some products require a lot to a greater extent machine hours then direct labor hours. As you washstand see from the different breakdowns the machine hours are very costly, and as we automate things even further the overhead forget non be assigned correctly! . Something that requires much more machine hours pull up stakes appear to have a lower cost, when in feature 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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