Hannah Guthy Destin Brass Products Co. Case Write-up 1. Use the Overhead Cost Activity Analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for valves, pumps, and flow controllers. | Total | Valves | Pumps | Flow Controllers | Manufacturing Costs: | | | | | Material Cost/Unit | | $16 | $20 | $22 | Units/Month | | 7,500 | 12,500 | 4,000 | Material Cost/Month | | $120,000 | $250,000 | $88,000 | Labor Costs: | | | | |
Words: 907 - Pages: 4
Case Study #1 Destin Brass Products Background Destin Brass Products is a local specialized brass products manufacturer in Florida. Brass foundries are purchased from suppliers and are machined and assembled in the company’s three product line. Valves, Destin’s first product line, is having a stable share in a mature market due to the precise specifications requirement and advanced manufacturing skills. Pumps, a product line generating 55% of the revenues is recently suffered from price cutting and
Words: 736 - Pages: 3
MEMORANDUM TO: Destin Brass Products Co. FROM: Brett Davis, Paul Gorski, and Sarah Wisenbarger DATE: September 17, 2015 SUBJECT: Analysis of Destin Brass Products Co. ------------------------------------------------- The purpose of this memorandum is to analyze the product costing of pumps, valves, and flow controllers at Destin Brass Products Co. Destin Brass supplies three products for high-quality brass boat fittings. Currently the most revenue is coming from the production
Words: 1693 - Pages: 7
ACCT 7107 Minor case 1 Destin Brass Products Co. 1. Background. Destin Brass Products is a company that manufactures pumps, valves and flow controllers. Roland Guidry is the president, Peggy Alford is controller, John Scott, the manufacturing manager and Steve Abbott, the sales and marketing manager, they held significant shares of this company. Pumps are the major production in the company but now they force to a situation that in this large market, other competitors reduce their prices
Words: 397 - Pages: 2
Unit 5 Research Project Terra O’Brien Destin Brass Products Company is concerned with its level of competition and their product costing system. Peggy has discussed some of the issues facing the company with Roland and John. The following are overhead activities and the cost drivers associated with them: Overhead Activities | Cost Driver | Machine depreciation | Increases with the amount of machine usage | Setup labor | Increase with the amount of setup hours. | Receiving | Increases
Words: 568 - Pages: 3
Destin Brass Products Co. manufactures three items: valves, pumps and flow controllers (FC's). All three items are used in water purification systems. Destin faces stiff competition in the pump market with no design advantage that would make their pumps more desirable. A meeting was held due to declining profits caused by a lower price Destin was able to charge for pumps and having budgeted pumps sales to account for 55% of company revenues. A proposal was put forth to modify how the company allocates
Words: 709 - Pages: 3
Destin Brass Products Company (“Destin”) was established in 1984 when Steve Abbott had sensed an opportunity after talking with a president of a large manufacturer of water purification equipment who was dissatisfied with the quality of the brass valves available. Soon after the formation of the company, Scott and his team were able to manufacture valves that met or exceeded the needed specification enabling them to acquire a contract with the purification equipment manufacturer and enabling them
Words: 314 - Pages: 2
Destin Brass Products Co. Case study Cost Issues. Vales: Several competitors could math our quality but none had tried to gain market share by cutting price and gross margins had been maintained. Pumps: Our competitors’ sales prices are below our pump-cost calculation even when our manufactural process is better. Could not figure out how competitors making profit unless being subsidized by other products. Flow Controllers: We increased price by 12.5% with no apparent effect on demand. Peggy
Words: 673 - Pages: 3
Destin Brass Products Co. Case Analysis Required Questions Solution Click Link Below To Buy: http://hwcampus.com/shop/destin-brass-products-co-case-analysis-required-questions-solution/ Purchase and read the case study titled Destin Brass Products Co. by William J. Bruns Jr. It should cost you $3.95. There is also a supplemental spreadsheet that you should download to work from. Disregard the questions at the end of the case. You should answer the following questions: Requirement
Words: 740 - Pages: 3
Destin Brass Products Co. Case Analysis Required Questions Solution Click Link Below To Buy: http://hwcampus.com/shop/destin-brass-products-co-case-analysis-required-questions-solution/ Purchase and read the case study titled Destin Brass Products Co. by William J. Bruns Jr. It should cost you $3.95. There is also a supplemental spreadsheet that you should download to work from. Disregard the questions at the end of the case. You should answer the following questions: Requirement
Words: 740 - Pages: 3
