Reference no: EM13163259
Diamond Plating uses electroplating processes to coat products in either silver or gold, to individual customer specifications. Most of the company's work is obtained through a process of tendering, where the company submits a competitive bid (quote). Over the last few months, Diamond Plating has been very quiet as many of its tender bids have been unsuccessful. The Managing Director, Susan Sharma, is concerned that the business may not be able to continue operating if it does not improve its success rate with tenders.
The company has 2 production departments, Preparation and Coating, and the production requirements for different jobs can vary significantly. Some jobs require extensive preparation, and minimal coating, others require little preparation but multiple coats.
The following table describes the results of the five bids that the company submitted last month. The numbers in brackets after losses show where the company was ranked in the bid process.
Job no
Direct labour hours in Preparation
Direct labour hours in Coating
Estimated Direct labour hours
Overhead cost of bid Won/Lost
1 12,000 3,000 15,000 41,250 Lost (5th) 2 3,000 12,000 15,000 41,250 Won 3 15,000 - 15,000 41,250 Lost (3rd) 4 - 15,000 15,000 41,250
Won 5 7,500 7,500 15,000 41,250 Lost (2nd)
The pattern shown in the above table has been the same for the past months.
The company uses a predetermined overhead rate based on practical capacity, which is measured in Direct Labour hours.
The budgeted overhead for the year for the Preparation department is $540,000 (of which $180,000 is fixed and $360,000 variable) and for the Coating Department it is $1,440,000 (of which $360,000 is fixed and $1,080,000. Each department has a monthly practical capacity of 30,000 direct labour hours.
Required:
1. Write a report to Susan Sharma identifying the reasons why the company has been losing bids to its competitors
2. Develop an alternative costing system to use for bids to overcome this problem. Support your analysis with a detailed comparison of the existing and proposed bidding systems.
|
Journalizing and reporting bond transactions
: The semiannual interest dates are May 31 and November 30. The bonds are issued on July 31, 2012, at par plus accrued interest.
|
|
Determine the mass in grams of chlorine
: Balance the equation and determine the mass in grams of chlorine that would be formed if 25 grams of PCl3 (molecular mass = 137.32 g/mol) decompose.
|
|
What is composition of mixture by volume
: A gas mixture composed of helium and argon has a density of 0.719g/l at a 743mmHg and 298k . What is composition of mixture by volume?
|
|
What is the molar heat of vaporization of nitrogen
: In one experiment, the mass of water is 93.0 grams, the initial temperature of the water is 67.2oC, the mass of liquid nitrogen added to the water is 57.8 grams, and the final temperature of the water, after the liquid nitrogen has vaporized, is 3..
|
|
Develop an alternative costing system
: Develop an alternative costing system to use for bids to overcome this problem and write a report to Susan Sharma identifying the reasons why the company has been losing bids to its competitors
|
|
Show the bitmap
: Show the bitmap after:a) File B is written, using 3 blocks b) File A is deleted. c) File C is written, using 4 blocks
|
|
What is the molar mas of agno3
: suppose you want to find out how many milliliters of 1.0 M AgNO3 are needed to provide 169.9g of pure AgNO3.
|
|
Describe the reactant and products of the chemical reaction
: Describe the reactant and products of the chemical reaction. Was the reactant (potato chip) completely consumed? What evidence supports your answer?
|
|
What is the new pressure of the bicycle tire
: a bicycle tire is filled with air to a pressure of 100 psi at a temperature of 100 degrees C. Riding the bike on asphalt on a hot day increases the temperature of the tire to 58 degrees C. the volume of the tire is increased by 4%. what is the new..
|