【正文】 35 Activity Based Costing BURDEN Burden Question Answers ? Can we add machines or materials to the database? ? Yes, at any time during the year. Just contact the special studies, burden analysis section, they will assist you in obtaining the appropriate information required. ? My supplier has a larger maintenance cost (MRO) than we allow in CAPE, should I increase my allowance ? Our system is predicated on “new” equipment. We then calculate the amount of maintenance required, and average that cost equally over the equipments life expectancy. During the firsthalf of the machines life we would expect that our maintenance allowance is overstated, and during the secondhalf it may be understated, however。 ? Add two meters to each dimension of the equipment footprint, allowing for safety zones, isles, access between machines, plus an additional 50% increment to account for stock storage, cribs, shipping and receiving, supervisory space, plant front office areas, and other ancillary space. Building 33 Activity Based Costing BURDEN ? Depreciation Straight line method ? Lifetime of Equipment ? 30 years building ? Interest (Opportunity Cost) ? Based on Longterm investment, low risk bonds ? applied to capital, supporting a portion of the Suppliers (ROI) ReturnonInvestment ? Insurance ? percentage applied to replacement value of equipment ? Utilities ? Operating cost。 ? Manufacturers of materials ? Ford Internal Manufacturing facilities 27 Activity Based Costing BURDEN MAINTENANCE, REPAIR OTHER (MRO) BURDEN ? MRO Burden for Equipment Tooling ? Cost applied to these segments are separated between the capital cost of the equipment/tooling and operating supplies. Equipment and Tooling ? Capital cost of Equipment and Tooling ? These costs apply to the Plant Engineering and Tool shop equipment necessary to maintain machines and tools. It is the responsibility of the supplier to keep their equipment/tooling in good operating condition to assure Ford quality standards and efficient productivity levels. ? Capital recovery cost is applied as a percent of investment. ? Operating Supplies cost of Equipment and Tooling ? Operating Supplies include spare parts, perishable tooling, safety equipment, gloves, etc. ? Operating Supplies recovery cost is applied as a percent of investment. 28 Activity Based Costing BURDEN MAINTENANCE, REPAIR OTHER (MRO) BURDEN ? Maintenance Schedules The maintenance of the machine or tool is predicated on the assumption that the equipment and tool is new. It’s logical, that at the beginning of production, the required maintenance will be a minor amount, and increase during its expected life. Our rates, however, generate an average amount, constant over the entire life, thus over pensating during the 1sthalf and possibly under pensating on the 2ndhalf. RESOURCES。 Capital $500,000, Freight Installation $50,000, Residual Value $25,000 Replacement value = $500,000 + $50,000 $25,000 = $525,000 Insurance factor .5% .5% x $525,000 = $2,625 = $.644/hr. = $.011/min. 4076 hr/yr 4076 25 Activity Based Costing BURDEN UTILITIES ? This category pensates the supplier for the utility consumption of the equipment during the manufacture of products. As with insurance, the building utilities are included in the building cost models. ? Utility costs are applied to the burden rate in the appropriate units of measure, example。 Initial Capital Cost $500,000 Cost of Machine Freight Installation $ 50,000 10% default if not available Residual Value $ 25,000 5% default salvage value if not available Lifetime hours 40,760 hrs $500,000 + $50,000 $25,000 = $525,000 = $$.2147/min 40,760 40,760 22 Activity Based Costing BURDEN INTEREST ? Interest is intended to pensate suppliers for the opportunity cost incurred in owning assets used to produce parts for Ford and should approximate the return on invested capital for a low risk investment. ? The interest rate is applied to the cost of capital and included in the burden rate. Current 2023 interest calculation is %. It is Cost Optimization’s policy to NEVER allow a higher interest rate than that provided by the Special Stud