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Questions 1 and 2: Costing of A 100-Unit Batch of CS-29 Carburetors

The document contains cost analyses for producing a 100-unit batch and spare parts inventory of CS-29 carburetors. For the 100-unit batch, the first proposal estimates total costs of $8,172.86 compared to the present method cost of $7,050.96, a difference of $1,121.90 or 16% more. The revised proposal estimates total costs of $8,063.42 compared to the present method, a difference of $1,012.46 or 14% more. For the spare parts inventory, the first proposal estimates total costs of $126,685.58 compared to revised estimates of $125,218.48.

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Erika Lozano
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37 views

Questions 1 and 2: Costing of A 100-Unit Batch of CS-29 Carburetors

The document contains cost analyses for producing a 100-unit batch and spare parts inventory of CS-29 carburetors. For the 100-unit batch, the first proposal estimates total costs of $8,172.86 compared to the present method cost of $7,050.96, a difference of $1,121.90 or 16% more. The revised proposal estimates total costs of $8,063.42 compared to the present method, a difference of $1,012.46 or 14% more. For the spare parts inventory, the first proposal estimates total costs of $126,685.58 compared to revised estimates of $125,218.48.

Uploaded by

Erika Lozano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Questions 1 and 2
Costing of a 100-unit batch of CS-29 carburetors:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 21 (17) $52.97 $1,112.37 $53.12 $1,115.52
........................................
Grinding 12 (10) 48.14 577.68 46.75 561.00
........................................
Machining 58 (46) 87.52 5,076.16 86.50 5,017.00
........................................
Assembly 35 (28) 40.19 1,406.65 39.14 1,369.90
........................................
Total, proposed 126 = 101% 8,172.86 8,063.42
method due to
........................................ rounding
Total, present 126 55.96 7,050.96 55.96 7,050.96
method
........................................
Difference $1,121.90 (16% more) $1,012.46 (14%
........................................ more)
Costing of spare parts for inventory:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 304 (18) $52.97 $16,102.88 $53.12 $16,148.48
........................................
Grinding 270 (16) 48.14 12,997.80 46.75 12,622.50
........................................
Machining 1,115 (66) 87.52 97,584.80 86.50 96,447.50
........................................
Questions 1 and 2
Costing of a 100-unit batch of CS-29 carburetors:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 21 (17) $52.97 $1,112.37 $53.12 $1,115.52
........................................
Grinding 12 (10) 48.14 577.68 46.75 561.00
........................................
Machining 58 (46) 87.52 5,076.16 86.50 5,017.00
........................................
Assembly 35 (28) 40.19 1,406.65 39.14 1,369.90
........................................
Total, proposed 126 = 101% 8,172.86 8,063.42
method due to
........................................ rounding
Total, present 126 55.96 7,050.96 55.96 7,050.96
method
........................................
Difference $1,121.90 (16% more) $1,012.46 (14%
........................................ more)

Costing of spare parts for inventory:


First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 304 (18) $52.97 $16,102.88 $53.12 $16,148.48
........................................
Grinding 270 (16) 48.14 12,997.80 46.75 12,622.50
........................................
Machining 1,115 (66) 87.52 97,584.80 86.50 96,447.50
........................................
Questions 1 and 2
Costing of a 100-unit batch of CS-29 carburetors:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 21 (17) $52.97 $1,112.37 $53.12 $1,115.52
........................................
Grinding 12 (10) 48.14 577.68 46.75 561.00
........................................
Machining 58 (46) 87.52 5,076.16 86.50 5,017.00
........................................
Assembly 35 (28) 40.19 1,406.65 39.14 1,369.90
........................................
Total, proposed 126 = 101% 8,172.86 8,063.42
method due to
........................................ rounding
Total, present 126 55.96 7,050.96 55.96 7,050.96
method
........................................
Difference $1,121.90 (16% more) $1,012.46 (14%
........................................ more)

Costing of spare parts for inventory:


First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 304 (18) $52.97 $16,102.88 $53.12 $16,148.48
........................................
Grinding 270 (16) 48.14 12,997.80 46.75 12,622.50
........................................
Machining 1,115 (66) 87.52 97,584.80 86.50 96,447.50
........................................
Questions 1 and 2
Costing of a 100-unit batch of CS-29 carburetors:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 21 (17) $52.97 $1,112.37 $53.12 $1,115.52
........................................
Grinding 12 (10) 48.14 577.68 46.75 561.00
........................................
Machining 58 (46) 87.52 5,076.16 86.50 5,017.00
........................................
Assembly 35 (28) 40.19 1,406.65 39.14 1,369.90
........................................
Total, proposed 126 = 101% 8,172.86 8,063.42
method due to
........................................ rounding
Total, present 126 55.96 7,050.96 55.96 7,050.96
method
........................................
Difference $1,121.90 (16% more) $1,012.46 (14%
........................................ more)
Costing of spare parts for inventory:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 304 (18) $52.97 $16,102.88 $53.12 $16,148.48
........................................
Grinding 270 (16) 48.14 12,997.80 46.75 12,622.50
........................................
Machining 1,115 (66) 87.52 97,584.80 86.50 96,447.50
........................................
Questions 1 and 2
Costing of a 100-unit batch of CS-29 carburetors:
First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 21 (17) $52.97 $1,112.37 $53.12 $1,115.52
........................................
Grinding 12 (10) 48.14 577.68 46.75 561.00
........................................
Machining 58 (46) 87.52 5,076.16 86.50 5,017.00
........................................
Assembly 35 (28) 40.19 1,406.65 39.14 1,369.90
........................................
Total, proposed 126 = 101% 8,172.86 8,063.42
method due to
........................................ rounding
Total, present 126 55.96 7,050.96 55.96 7,050.96
method
........................................
Difference $1,121.90 (16% more) $1,012.46 (14%
........................................ more)

Costing of spare parts for inventory:


First Proposal Revised Proposal
Department Hours (%) Rate Total Rate Total
Casting/Stamping 304 (18) $52.97 $16,102.88 $53.12 $16,148.48
........................................
Grinding 270 (16) 48.14 12,997.80 46.75 12,622.50
........................................
Machining 1,115 (66) 87.52 97,584.80 86.50 96,447.50
........................................

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