Part A
1) Key success factor (KSF) Those business practices, functions, or activities are defined by the market not the company, and as observed by customers that are critical to the customer/company relationship.
Key Success Factors are commonly three to five regions that a company may focus on to attain its vision. Key success factors differ from core resources and skills, which are prerequisites for being on a market, but do not explain differences in costs incurred and value created. Also they are differ from unhand resources and skills, which neither explain differences in costs incurred and value created, nor do they form prerequisites for being on a market. The key success factors may vary from an organization to organization.
Their …show more content…
The top-level management in Roman Cements Company has identified that their supply chain and their value chain management activities are their key success factors which need to be further strengthened in order to enjoy monopoly profits in the highly competitive cement industry. Their scope of discussions to organization is that they can categories the key success factors into four: resources, goals, people, and process. They are so successful in their business activities due to their cost-conscious efforts and efficiency. Their value chain has been so successful. The top management prefers activities in a way that no customer is chastise due to their inefficiency in operations. Their operational efficiency has been characterized by their operations and the value (quality) of product offers to their customers and their timely supply of finished products to their …show more content…
*Total cost of manufacturing = Prime cost + Manufacturing overhead
Quarter1=11,040,000+200,000 = 11,240,000
Quarter2=13,800,000+200,000 = 14,000,000
Quarter3=16,560,000+250,000 = 16,810,000
Quarter4=22,080,000+300,000 = 22,380,000
Cost per unit = Total cost of manufacturing / output units*
Quarter1= 11,240,000 / 40,000 = 281 per unit
Quarter2= 14,000,000 / 50,000 = 280 per unit
Quarter3= 16,810,000 / 60,000 = 280.1666667 per unit
Quarter4= 22,380,000 / 80,000 = 279.75 per unit
Part B
1)
*Direct labor hours per unit
M N O Total labor cost
Total hours per unit =160 / 20 = 8 hour per unit
Total labor cost= 8 * 60,000 = 480,000 Total hours per unit = 120 / 20 = 6 hour per unit
Total labor cost= 6 * 96,000 = 576,000 Total hours per unit =200 / 20 = 10 hour per unit
Total labor cost= 10 * 80,000 = 800,000
1,856,000
Overhead per hour = Indirect production cost / Total labor cost
4,176,000 / 1,856,000 = 2.25 per hour
*Overhead cost per unit
M N O
Total overhead per unit =
8 * 2.25 = 18 Total overhead per unit =
6 * 2.25 = 13.5 Total overhead per unit =
10*2.25= 22.5
Total cost per unit M N O
Direct labor per unit
(+)Direct material per unit
(+)Overhead per unit 160
140
18 120
180
13.5
1) Key success factor (KSF) Those business practices, functions, or activities are defined by the market not the company, and as observed by customers that are critical to the customer/company relationship.
Key Success Factors are commonly three to five regions that a company may focus on to attain its vision. Key success factors differ from core resources and skills, which are prerequisites for being on a market, but do not explain differences in costs incurred and value created. Also they are differ from unhand resources and skills, which neither explain differences in costs incurred and value created, nor do they form prerequisites for being on a market. The key success factors may vary from an organization to organization.
Their …show more content…
The top-level management in Roman Cements Company has identified that their supply chain and their value chain management activities are their key success factors which need to be further strengthened in order to enjoy monopoly profits in the highly competitive cement industry. Their scope of discussions to organization is that they can categories the key success factors into four: resources, goals, people, and process. They are so successful in their business activities due to their cost-conscious efforts and efficiency. Their value chain has been so successful. The top management prefers activities in a way that no customer is chastise due to their inefficiency in operations. Their operational efficiency has been characterized by their operations and the value (quality) of product offers to their customers and their timely supply of finished products to their …show more content…
*Total cost of manufacturing = Prime cost + Manufacturing overhead
Quarter1=11,040,000+200,000 = 11,240,000
Quarter2=13,800,000+200,000 = 14,000,000
Quarter3=16,560,000+250,000 = 16,810,000
Quarter4=22,080,000+300,000 = 22,380,000
Cost per unit = Total cost of manufacturing / output units*
Quarter1= 11,240,000 / 40,000 = 281 per unit
Quarter2= 14,000,000 / 50,000 = 280 per unit
Quarter3= 16,810,000 / 60,000 = 280.1666667 per unit
Quarter4= 22,380,000 / 80,000 = 279.75 per unit
Part B
1)
*Direct labor hours per unit
M N O Total labor cost
Total hours per unit =160 / 20 = 8 hour per unit
Total labor cost= 8 * 60,000 = 480,000 Total hours per unit = 120 / 20 = 6 hour per unit
Total labor cost= 6 * 96,000 = 576,000 Total hours per unit =200 / 20 = 10 hour per unit
Total labor cost= 10 * 80,000 = 800,000
1,856,000
Overhead per hour = Indirect production cost / Total labor cost
4,176,000 / 1,856,000 = 2.25 per hour
*Overhead cost per unit
M N O
Total overhead per unit =
8 * 2.25 = 18 Total overhead per unit =
6 * 2.25 = 13.5 Total overhead per unit =
10*2.25= 22.5
Total cost per unit M N O
Direct labor per unit
(+)Direct material per unit
(+)Overhead per unit 160
140
18 120
180
13.5