Destin Brass Products Co.

Receiving & Material Handling (A)

Packing & Shipping (B)
Engineering (C)
Maintenance (D)

$220,000.00
$60,000.00
$100,000.00
$30,000.00

Valves @ 3%
Pumps @ 19%
Flow Controllers @ 78%

Overhead (A)
$6,600.00
$41,800.00
$171,600.00
$220,000.00

Valves @ 3%
Pumps @ 23%
Flow Controllers @ 74%

Overhead (B)
$1,800.00
$13,800.00
$44,400.00
$60,000.00

Valves @ 20%
Pumps @ 30%
Flow Controllers @ 50%

Overhead (C)
$20,000.00
$30,000.00
$50,000.00
$100,000.00

Valves @ 35%
Pumps @ 58%
Flow Controllers @ 7%

Overhead (D)
$10,500.00
$17,400.00
$2,100.00
$30,000.00

From exhibit 2

From Exhibit 5 Ovehrhead

cost activity analysis

Number of units

Valves
7500

Pumps
12500

Total Overhead Cost

Overhead Cost/unit
Direct Material Cost/unit
Direct labour Cost/unit
Total Cost/unit
Selling Price/unit
Profit
Profit Margin

Valves
$38,900.00
$5.19
$16.00
$4.00
$25.19
$57.78
$32.59
56.41%

Pumps
$103,000.00
$8.24
$20.00
$8.00
$36.24
$81.26
$45.02
55.40%

Flow Controller
4000
Flow Controller
$268,100.00
$67.03
$22.00
$6.40
$95.43
$97.07
$1.64
1.69%

Exhibit 2