# Wilkerson Case Essay

1345 Words Aug 7th, 2016 6 Pages
1. Describe Wilkerson’s competitive environment. At a minimum, include any barriers to entry, industry maturity, the specific market and production complexity for each product, and marketing concerns.

Wilkerson is a manufacturing company specializing in manufacturing components for water purification systems; the company makes valves, pumps, and flow controllers. Wilkerson is a supplier to companies that actually manufacture the water purification equipment. The relevant officers of the organization are:

* Robert Parker, President * Peggy Knight, Controller * John Scott, Manufacturing Manager

According to the United States International Trade Commission,

“U.S. exports of water filtration and purification equipment
To briefly summarize, prime costs are directly traced. Each product consists of several components with varying costs and labor inputs. MOH is applied using a fixed rate of 300%

4. Using expected production levels, construct an ABC system. For each ABC activity pool, calculate an activity rate and an activity percentage (%). For each product, calculate the overhead cost per unit and the total cost per unit using ABC.

Manufacturing Overhead Rates | | Machine Expense/Machine hours | \$30.00 | Setup Labor Cost/Production run | \$250.00 | Receiving &ProdControl/Production run | \$1125.00 | Engineering Cost/Hour of Engineering work | \$80.00 | Packaging & Shipping/Number of shipments | \$500.00 | | Pumps | Valves | Flow Controllers | Direct Material | \$16.00 | \$20.00 | \$22.00 | Direct Labor | \$10.00 | \$12.50 | \$10.00 | | | | | Total Prime Costs | \$26.00 | \$32.50 | \$32.00 | | | | | MOH | | | | Machine related expense | 15.00 | 15.00 | 9.00 | Setup Labor | 0.33 | 1.00 | 6.25 | Rec & Production Control | 1.50 | 4.50 | 28.13 | Engineering | 2.67 | 2.40 | 12.50 | Packaging and Shipping | 0.67 | 2.80 | 27.50 | Total MOH | \$20.17 | \$25.70 | \$83.38 | | | | | Total Unit Cost | \$46.17 | \$58.20 | \$115.38 |

5. What

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