【正文】 = $9 per direct labor hour Unit cost: Regular: ($15 ? 1) + ($9 ? ) = $ Super: ($15 ? 2) + ($9 ? 1) = $39 2. Regular: $76,000/8,000 = $ per unit Super: $240,000/8,000 = $30 per unit The JIT cost is more accurate because it has more costs that can be assigned using direct tracing. 3. JIT manufacturing should result in more efficient production, and, thus, costs would be reduced. For example, a cell structure would almost eliminate the materials handling requirements, and most of this cost should disappear. Multidisciplinary labor and decentralization could produce additional savings. 241 PROBLEMS 11–11 1. Cost per labor hour = ($5,000,000 + $7,500,000*)/250,000 = $50 per hour *($30 ? 250,000 DLH = $7,500,000). Cost per unit of average product = $50 ? = $ 2. Cost per hour = ($6,600,000 + $6,000,000*)/200,000 = $ per hour *($30 ? 200,000 DLH = $6,000,000). Cost per unit of average product = $63 ? 1 = $63 3. The design changes increased nonunitbased overhead activities, while decreasing unitbased costs. This is suggested by the fact that engineering change orders triggered a number of overheadrelated activities such as changes in setup, inspection, and purchasing activities. Thus, socalled fixed overhead increased by $1,600,000. Reduction in labor content may have e at the expense of increasing the demand for nonunitrelated activities. This is supported by the analysis of the effects of the design changes on setups and purchasing: Setups: Change in demand for setups = (40,000 – 20,000)/2,000 = 10 steps Change in resource spending = 10 steps ? $90,000 = $900,000 Purchasing: Change in demand for purchasing = 250 – 100 = 150 ponent types Change in steps demanded = 150/20 = , thus requiring 8 steps (partial steps cannot be acquired) Change in variable activity cost = $150 ? $2,000 = $300,000 Change in stepfixed cost = 8 ? $50,000 = $400,000 Total change = $300,000 + $400,000 = $700,000 242 The engineers did not have a correct view of the existing internal linkages. To exploit internal linkages, it is imperative that internal valuechain activities be identified with their associated cost drivers. 11–11 Concluded 4. The cost of producing decreases by $250,000 for the rejected design: Unitlevel activities: Unitlevel cost change = (260,000 – 250,000) ? $30 = 10,000 ? $30 = $300,000 Setups: Setup cost change = (10,000 – 20,000)/2,000 = 5step reduction ? $90,000 = ($450,000) savings Purchasing: Purchasing demand change = (75 – 100) = (25) Decrease in steps = 25/20 = 1 (rounded down to nearest whole unit) Decrease in variable cost = $2,000 ? (25) = ($50,000) Decrease in step cost = $50,000 ? (1) = ($50,000) Total change = $300,000 – $450,000 – $50,000 – $50,000 = ($250,000) The rejected design actually produces a $250,000 savings relative to the current design. Relative to the accepted new design, the savings is $1,600,000 more! This emphasizes the importance of having the facts correct when making strategic changes. ABC links output with activities and activities with costs. Thus, any change in product design with an impact on activities could be associated with cost changes. By describing cost behavior better and establishing the indicated linkages, ABC can help a manager identify the best cost reduction strategies. 243 11–12 1. Supplier cost: First, calculate the activity rates for assigning costs to suppliers: Testing engines: $240,000/1,000 = $240 per engine Reworking products: $400,000/5,000 = $80 per rework hour Expediting orders: $300,000/100 = $3,000 per late shipment Repairing engines: $540,000/1,250 = $432 per engine Next, calculate the cost per engine by supplier: Supplier cost: Bach Rivera Purchase cost: $270 ? 10,800 ................... $ 2,916,000 $300 ? 2,400..................... $ 720,000 Replacing engines: $240 ? 990 ....................... 237,600 $240 ? 10 ......................... 2,400 Rework: $80 ? 4,900 ...................... 392,000 $80 ? 100 ......................... 8,000 Expediting orders: $3,000 ? 99 ...................... 297,000 $3,000 ? 1 ........................ 3,000 Repairing engines: $432 ? 1,220..................... 527,040 $432 ? 30 ......................... 12,960 Total supplier cost ..................... $ 4,369,640 $ 746,360 Units supplied ............................ 247。 10,800 247。 800,000 Unit cost ........................ $ * $ * *Rounded to the nearest cent. The difference favors Grayson。 2,400 Unit cost .......................... $ $ The Rivera engine costs less when the full supplier effects are considered. This is a better assessment of cost because it considers the costs that are caused by the supplier due to poor quality, poor reliability, and poor delivery performance. 2. Given that Plata needs both suppliers, it seems sensible to first shift more business to the true lowcost supplier and then take actions to help improve behavior of Bach engines. Plata could share the ABC analysis with Bach and show how the poor quality and delivery performance are affecting the costs of Plata. Plata may offer to share expertise so that Bach can improve its performance. ABC helps in strategic analysis by tracing costs to their sources—even if those sources are outside the factory walls. It reveals opportunities for 244 reducing costs and improving relations with external parties (suppliers in this case). 11–13 1. Following GAAP is fine for external financial reporting。 200,000 247。 however, for internal reporting it