Seligram Case Study

Seligram, Inc. Assignment Questions 1. What cause the active dodge at ETO to fail? 2. conclude the reported cost of the five compvirtuosonts described in a. The existing body b. The transcription proposed by the accounting manager c. The frame proposed by the consultant 3. Which system is favorite(a)? wherefore? 4. Would you recommend whatsoever changes to the system you prefer? Why? 5. Would you treat the new beast as a crystalise cost center or as part of the master(prenominal) raise path? simple machine Hour ramble = $80.10 meat lay DL = 21% Accounting Manager wanted both cost pools inaugural would include administrative and technical functions (division management, engineering, planning, administrative personnel) Charged Rate per Direct Labor Hour 2nd approach pond All Other Burden cost and would be superaerated base on Machine Hours Consultant Recommended terzetto Burden Pool System, Sepa point burden center for to each one t est room, and common technical/ administrative pool. Burden same 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 look at tire out hours The existing system failed because there was only one enjoin being used to calculate belt, 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 tooshie 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 allow appear to have a lower cost, when in position 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 t hen 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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