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This project examined the actual costs of maintaining support personnel for each product class and manufacturing department. These actual support costs were compared to the current (company wide) burden rate so that the inaccuracies for each area were revealed. This project does not address the expenses associated with the support of the customer service center, which is primarily a repair facility. This project does not address the profit margin, which is added to the manufacturing cost to obtain the sales price. Significance of the Project Although the current system may actually produce the desired “bottom line” by comparing direct and in-direct labor expenses on a company wide basis. It certainly does not provide an accurate manufacturing cost for the different products and departments. Therefore, the Sales Department cannot know if a discount can be given on a specific product. It was felt that this analysis would reveal that Walter Kidde was already selling some products at a significant loss, even after adding a generous profit margin to the manufacturing cost (as currently calculated).
Approximate Word count = 570
Approximate Pages = 2.3
(250 words per page double spaced)
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