1. direct material costs: based on the weight of each product
2. machines, direct labor, and pipe distribution fee: according to weight, or production time to calculate.
3. profits, commissions and royalties in proportion to the allocation.
The cost model in many ways, but a standard cost system must be reviewed regularly to maintain accuracy of production-related cost data.
Three kinds of pipe distribution cost-sharing methods are as follows: method one: cost per pound
Is the total cost of the first day in this manner within a specific period the total amount of material (or products). Thus, you can quickly work out the cost of the product, but are usually overestimated the large product, or underestimate the smaller products. This method applies to the production of a similar size, shape, and is not suitable for complex product costing.
This method is based on the assumptions of material usage is consistent. Based on United States 1999 statistics, rotationally molded OEM price (inclusive of all costs) for $ 2 per pound, while the toy is about 1.1 pound. dollars.
Method two: cost per arm
Total cost of this approach is to produce the first day the total number of arm during a specific period. This average cost to products on the arm as a space to share, based on the concept of consumption associated with the usage. This method applies to the description of each operator’s productivity and yield goals established at the participation as machine. This method suitable for processing balance of system, but will process loop imbalance, affected other production problems, such as large changes.
At the time the estimate, profits can be included. So, a machine using direct materials price, rates and commissions to join, then the cost of the product.
Method three: cost-per-minute
This method was first divided into the total production cost total production time. The concepts and methodology II is similar, except that it is applied to production-sharing, rather than the gross value of output. Apply to all stations cycle time balanced situation, if the loop does not balance, the cost of exports and difficulties.
Basically, the heating and the cooling time can be roughly estimated, but stripping, stuffing time can hardly be projected, wait until the mold can be confirmed..
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