Answer 1- A Material OH burden rate The material overhead burden rate of Mueller-Lehmkuhl is calculated by dividing the material overhead rate by its activity measure.
Introduction to Financial Management Capital Budgeting Techniques Mueller-Lehmkuhl MLa company incorporated in the Germany, which was established in as a manufacturer of shoes accessories.
Mueller Lehmkuhl expands its product range by including simple as snap fastener. Mueller-Lehmkuhl merged with a company called Weiser Hannover. Inalso it merged with Felix-Lehmkuhl and became Mueller-Lehmkuhl. Init was acquired by the Mosel hammer group.
In addition, a joint venture with the German subsidiary of Atlas Group, an American multinational was formed.
Atlas consisted of six large companies, one of them — Clothing Fasteners — Mueller-Lehmkuhl supplemented. Atlas Germany maintained a broader customer base. The goal was to integrate the technological superiority of money laundering and higher margins with access to Atlas in the market.
Product Description The products that were developed by the Mueller-Lehmkuhl are used to replace the button and buttonholes. The product line of fasteners consists of different product lines consists of S-Spring socket snap fasteners, ring socket snap fasteners, two open prong snap fasteners, and tack buttons.
Each of these products has their own unique specifications. On the other hand, Mueller Lehmkuhl also manufactures the attaching machines. About six machines were manufactured by the Mueller Lehmkuhl among which there are manual and there are automatic.
These automatic machines were used to produce high volume of Fasteners. Mueller Lehmkuhl has the policy to sell the existing old machines and acquire the new automatic machines. Answer 1 Answer 1- A Material OH burden rate The material overhead burden rate of Mueller-Lehmkuhl is calculated by dividing the material overhead rate by its activity measure.
Answer 2 Accounting Policy of Mueller Lehmkuhl Mueller-Lehmkuhl follows the accounting practice in such a way that it attaches all the cost of the machine into the cost of the fastener.
The general overhead of the Mueller-Lehmkuhl consists of the component of engineering, material, etc. The product of the Mueller-Lehmkuhl was charged directly after the adjustment of the material. The new Mueller-Lehmkuhl costing system also identifies a charge material overhead. This includes the cost associated with purchasing, materials handling, and storage of inventory.
The products material overhead on the basis of the materials consumed dollars were also allocated. In the department of stamping and assembly of Mueller-Lehmkuhl, labor costs, is divided by the number of the machine being operated in Mueller-Lehmkuhl, and they were charged directly to each of the production costs.
Settings labor costs, then divide by lot size to produce a setup charge by, they were also directly charge for the product. Overhead was divided into two sections: The cost of the machine was significant costs that could be assigned directly to the machine: The total cost of these items for each kind of machine which is then divided by the direct labor dollar projected, including the cost of installation, which is expected to be working in that kind of rate machine to machine overload class direct labor dollar for the next following year.
The rate resulting from machine load multiplied by the contents of hand dollar standard direct labor for each product to give the top machine related product cost. The portion of the general overhead of Mueller Lehmkuhl mostly consists of technical management, factory support, machine cost department, plant equipment, support department cost.
The cost of general department is allocated in such a way that they were assigned to each department based over the direct labor cost, including its cost configuration.
The cost pool for each of the department for the next following years is based over the rate of overtime of the production machine. The resulting loading rate is multiplied by the department dollar labor content standard direct labor for each product to give the part related overhead- overall product cost.
In order to reflect the true picture of the cost and to implement a sound cost accounting system, Mueller Lehmkuhl should implement activity based costing method, which allocates manufacturing overhead costs to the products in a more logical way than the traditional approach of simply assigning costs based on machine hours.
Activity Based Costing first assign costs to activities that are the real cause of the overload. Answer 4 Product Having Higher Profitability. Answer 5 Hiroto Industries Initiatives The initiatives taken by the Japanese company must be considered, as another competitor is emerged in the European market which can disrupt the sale of Mueller Lehmkuhl.
Mueller Lehmkuhl fasteners that were offered to mount compatible only with fixing machines, but Hiroto Industries manufactured fasteners that are compatible even with fixing machines Lehmukuhl Muller.The present research has identified that the Mueller-Lehmkhul production process for instance consists of machining and tooling departments which are mainly set aside for producing attaching machines.
Mueller-Lehmkuhl sells apparel fasteners and rents attaching machines. It views these two products as effectively a single item and prices them accordingly, the fasteners at high profit and its attaching machines at a loss. The cost system allocates the cost of the attaching machines to the fasteners.
Mueller-Lehmkuhl sells apparel nails and rents affixing machines. It sights both of these items as effectively just one item and costs them accordingly, the nails at high profit and it is affixing machines baffled.
The price system allocates the price of the affixing machines towards the nails. Mueller-Lehmkuhl sells apparel fasteners and rents attaching machines.
It views these two products as effectively a single item and prices them accordingly, the fasteners at high profit and its.
Mueller-Lehmkuhl follows the accounting practice in such a way that it attaches all the cost of the machine into the cost of the fastener. The general overhead of the Mueller-Lehmkuhl consists of the component of engineering, material, etc.
this practice generally consists of allocating the cost of the fastener inventory rather than allocating the cost . Mueller-Lehmkuhl (ML), a producer of apparel fasteners,wasfounded in The company was initially incorporated as a manufacturer of shoe accessories.
After the merger of the company with Weiser and felixLehmkuhl, the company has started manufacturing and selling a .