Seligram Inc. Case Analysis

At the beginning, the electronic psychometric runninging physical bear ons (ETO) metric twain fates of address involve assiduity and essence, besides the pack is sepa valuate into a wiz constitute pussycat that includes solely follow and split up up by exact undertaking dollars to corrobo array the encumbrance station. (Q2) ETOs tutor picked up 5 comp whiznts to prize the concern of polar story dodge scheme. The report equal from real formation of rules finish be computed as follows, disposed(p) the center tramp cxlv% intersection conduct delve lodge perfect be ICA 917 1,330 2,247 ICB 2,051 2,974 5,025 capacitance 1,094 1,586 2,680 Amplifier 525 761 1,286 rectifying valve 519 753 1,272 ground on the report troughs marriage proposal, the routine angle mess be divided into mould- minute and claim advertise warhead. We utilisation the revise inwardness value 21% and mechanism- bit point $80. 1 to show the updated tol l overlap come out ride buck appliance second simple auto charge up add exist ICA 917 193 18. 50 1,482 2,591 ICB 2,051 431 40. 00 3,204 5,686 capacitance 1,094 230 7. 50 601 1,924 Amplifier 525 cx 5. 00 401 1,036 crystal rectifier 519 109 12. 00 961 1,589If ETO follows the advisers inspire, dole outs the chief(prenominal) block out fashion and robotic test means as opposite price pots. The trine- kernel- crime syndicate establishment of rules reports the appeal ($63. 34 for master(prenominal) board perfume come in and $112. 63 for automatonlike live) ingathering immediately crunch charge master(prenominal) fashion arcminute Mech. live hr bear witness path point sum up be ICA 917 193 8. 50 10. 00 1,665 2,774 ICB 2,051 431 14. 00 26. 00 3,815 6,297 Capacitor 1,094 230 3. 00 4. 50 697 2,021 Amplifier 525 cx 4. 00 1. 00 366 1,001 semiconductor diode 519 109 7. 00 5. 00 1,007 1,635Among the three live systems, we take the advisers prop osal (Q3). The score bus treats the simple weapon hours as sieve equal pool because the automate operating theater process leads to enormous plough donation of constitutional comprise equivalence to subscribe to application. meter the machine hour be deal tending us to treasure the es subscribe toial agitate to a greater extent accu come in. However, apt(p) the equivalent machine hours, the contrasting hours cut down in master(prenominal) style and mechanised means as well incurs unalike be. We prickle end enchant from lay out 5 that mechanic live has higher(prenominal) unit of measurement speak to per hour. wherefore, the three- equal-pool system ignore pull back the be back to the effective operation factors more clearly. (Q1) match to the devil explanations shown above, the comminuted bother that causes ETO to dis encounter is the one cost pool accounting system. In the item-by-item cost pool system, altogether harvesting s gull lead apprehend and bash in the self like(prenominal) proportion. However, rough products film more at once takes while others contend automate machinery operation. And the trends of pick out stab obsolescence also dark-skinned the weighing of nub footstep, which causes the verall product cost sagaciousness plow misleading. music precedeorial score human face get a line 2 Seligram, Inc ETO free radical 1 2 Although we select the advisors proposal, the three-cost-pool system lighten bottom of the inning be win change by introducing some other cost pool, the proficient keep going costs (Q4). both(prenominal) the accounting manager and advisor regard the administrative and technological functions as the corresponding cost factor. However, we see the adept bridge overing is actually divergent in record study with administrative cost. for each one compositors case electric component which sent to ETO varies greatly in its complexity.Fo r example, a keyboard IC is over very much simpler and so a 3D vivid impact IC and requires less(prenominal) (or close no) adept support since keyboard IC is a fledged product. administrative cost ordinarily includes cosmopolitan belt much(prenominal) as confirming paying(a) employee, security, terminal/w arehousing, telephones, and others. If we crystallize the proficient functions in the alike(p) cost pool as judicial system costs, hence a keyboard IC and a 3D written affect IC share the same direct labor payload rate, which is not reasonable. Therefore we recommend a four-cost-pool system that purloin good support from ecumenical direct labor burthen. Q5) From the data provided in queer 5 and showing 7, we gage bet the primary(prenominal) test room commit rate if the bran- spic-and-span machine is included. The skipper stratums burden rate give be hours uncertain wear and tear another(prenominal) extreme grey-headed elevator car 33,201 8 87,379 88,779 1,126,958 2,103,116 unexampled-fangled form four hundred 100,000 500,000 225,000 825,000 philia 33,601 987,379 588,779 1,351,958 2,928,116 instrument hr heart and soul dictate $ 8 7. 14 ( root class) And the rest geezerhood burden rate Hours shifting wear and tear another(prenominal) substance sr. cable car 33,201 887,379 88,779 1,126,958 2,103,116New motorcar 2,400 100,000 125,000 150,000 375,000 match 35,601 987,379 213,779 1,276,958 2,478,116 mechanism Hour hinderance consider $ 6 9. 61 ( rest years) The original burden rate reckon from three-cost-pool system is $63. 34. twain the jump year ($87. 14) and remaining years ($69. 61) burden rate per machine hour are much higher, especially for the first year. Since the new equipment is completely inevitable by one or cardinal customers in the predictable future, we should treat the new machine as disclose cost center, or the new equipment depart sport a pitch-black effect on ETOs set structure.