Premium Essay

Youngstown

In: Business and Management

Submitted By dmd1234
Words 274
Pages 2
Youngstown Products, a supplier to the automotive industry, had seen its operating margins shrink below 20% as its OEM customers put continued pressure on pricing. Youngstown produced four products in its plant and decided to eliminate products that no longer contributed positive gross margins. Details on the four products are provided below: Product A B C D Total
Production Volume (units) 10,000 8,000 6,000 4,000
Selling Price $15.00 18.00 20.00 22.00
Direct Materials/unit $ 4.00 $ 5.00 $ 6.00 $ 7.00
Direct Labor Hours/unit 0.24 0.18 0.12 0.08
Total Direct Labor Hours 2,400 1,440 720 320 4,880
Plant Overhead $122,000
DL rate/hour $30

Youngstown has a traditional cost system with the plant-wide overhead rate calculated by dividing total overhead costs by total direct labor hours. Assume, for the calculations below, that plant overhead is a committed (fixed) cost during the year, but that direct material and direct labor are flexible (variable) costs.
1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products.
2. If any product is unprofitable with this cost assignment, drop this product from the mix.
3. Return to step 1. Recalculate the overhead rate based on the remaining total direct labor hours in the plant, and apply the new overhead rate to the remaining products.
4. Continue to cycle through steps 1–3 until all the products have been dropped and the plant is not longer producing any products. What is happening at Youngstown and…...

Similar Documents

Free Essay

Great Lake

...GREAT LAKES PIPE & TUBE, INC. “If we do decide to produce the 10- and 12-inch pipe internally, it could solve our overstaffing problem,” Mark Rubin, owner of Great Lakes Pipe & Tube, Inc. (GLPT), remarked to Vinny Patricko, the plant manager. “I’m reluctant to lay anyone off or even cut back hours. It’s not good business and it’s not the right thing to do if it can be at all avoided.” THE FIRM Mark Rubin had no intentions of starting his own firm in 1972. Since graduating from college in 1964, he had worked for ML Pipe, a company based in Youngstown, Ohio. In January 1972, the company decided to relocate to New Jersey, and Rubin went also. Rubin and his wife were quite unhappy in Virginia, mainly because they felt so distant from their relatives, nearly all of whom were located around Youngstown. In May of 1972, he decided to move back to Youngstown and start his own pipe company. Rubin felt he understood the manufacturing side of the piping business “inside and out.” He recognized, however, that in order to be successful, he needed marketing and financial expertise. By his own admission, Rubin made “many mistakes” during the first 18 months, but nonetheless, the business surged ahead. By the third year, it was clear not only that the company would be successful, but that it had the potential to prosper. And prosper it has. GLPT operates on 14 acres and employs 31 people. In fiscal year 1991, sales totaled nearly $25 million despite a......

Words: 2158 - Pages: 9

Free Essay

Drug Sentencing

...intent to distribute to the illegal sale of prescription drug samples (Drug Enforcement Administration, 2011). The author came across an article where a law enforcement officer was arrested for drug conspiracy and fraud (U.S. Immigration and Customs Enforcement) (www.ice.gov). In a recent new report, twenty-eight people were indicted in an organize drug pipeline that ran through New York and San Diego, which had lead to Mexico cartels. Those people that face these charges were caught bringing marijuana, crack, cocaine, meth, and heroin from the East Coast to the West Coast and eventually back to Youngstown, Ohio. Half dozen of those people that were indicted were from Youngstown, Ohio. According to Dettelbach, United States Attorney, stated “It sends a strong message to people who are making decisions about whether or not they are going to spread this poison in Youngstown. And the message is you’re not welcome here and there’s a cost to pay”. (Steven Dettelbach) (Gerry Ricciutti, 2011, wkbn.com). In a recent article, a local police officer was arrested for tipping off two drug dealers. He used his power to access a special statewide law enforcement computer network to tip them off. He only received five years probation and lost his law enforcement job last October. (Bobby, 2011). The researcher is appalled on this, he took a oath to serve and protected the people who in his neighborhood and what kind of example did he set for those who are currently law......

Words: 3555 - Pages: 15

Premium Essay

Construct and Support an Argument

...of basic business processes that relate to the production and marketing of goods and services, finance, human resources, and information flows. Economic, political, legal, social and cultural forces, international as well as domestic, that shape the market environment within which organizations strive to achieve competitive advantage. Ethical dimensions of decision-making Students completing the MBA program will demonstrate the following skills: Ability to identify and analyze complex business situations and to develop and implement effective solutions. Written and oral communications ability. Effective use of information technology for decision-making. Ability to work effectively in a group environment” (Youngstown State University, 2009). Pursuing an MBA degree to further your career can also be personal gratification. Control your own future by seeking education to help develop to movement of your career. Education can boost your career, while helping you reach your own personal goals. Never underestimate you own ability to become what you see fit to be. A master’s degree shows everyone how dedicated and devoted you can be a challenging goal. A master’s degree is a lifetime reward and benefits to your career, family, and self. My sister-in-law, Shea, obtained her master’s degree in sociology about 5 year ago. Shea mentioned that is was challenging, but the reward of career benefits out ways the past struggles. Shea worked her way up in the......

Words: 1119 - Pages: 5

Premium Essay

Prince

...thousands of permanent jobs for Beaver County, Pennsylvania. A new KPMG analysis of the U.S. chemical industry emphasizes that “[w]ith a new and abundant source of low-cost feedstock, the US market has transformed to become one of the most advantageous markets for chemical production in the world.” Shuttered steel towns like Youngstown, Ohio, are seeing a re-emergence of manufacturing employment opportunities. In Youngstown, V&M Star, the pipe and tube producer, is building a factory to manufacture seamless pipes for hydraulic fracturing that will employ 350 people. 3- http://energy.about.com/od/gloss/g/Hydraulic-Fracturing-Fracking-Or-Fraccing.htm http://www.heritage.org/research/reports/2012/08/hydraulic-fracturing-critical-for-energy-production-jobs-and-economic-growth http://latimesblogs.latimes.com/world_now/2012/10/us-boon-from-shale-gas-fracking-holds-little-global-promise.html http://online.wsj.com/article/SB10001424052702304692804577283620419058872.html http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Reaction/Documents/reaction-magazine-seventh-edition.pdf http://www.bloomberg.com/news/2012-01-10/youngstown-opens-mills-again-as-states-jockey-for-fracking-jobs.html...

Words: 456 - Pages: 2

Free Essay

College Funding

...ensure student success. In response to that, out of the 14 main colleges across the state of Ohio, 3 of those would receive a decrease in funding in the year of 2010 (Moltz). Those three colleges are Central State, Shawnee State, and Youngstown State. Three schools that have been notoriously open enrollment colleges. Elizabeth Blevins, a Shawnee State spokesperson, claimed that her university would have to cut costs to deal with the budget decrease. Blevins also noted that if Shawnee State ever experienced serious funding issues that the university would be open to abandoning its mission of open enrollment. Notice the impact that this new system would have on schools with open enrollment. Shawnee University has gone on record saying that if funding becomes more of a problem in the future, that they would no longer allow “marginal” or “at-risk” students to be enrolled in their university. Tom Maraffa, assistant to YSU’s president, said that although they would not change its enrollment standards, that administrators were not happy with the decrease in state dollars. Two-thirds of Youngstown State’s budget comes from tuition dollars. Maraffa also said that it would not be a big deal if the state did not order a tuition freeze. Youngstown State would normally place a small increase in tuition, but the state’s tuition freeze blocked that from happening. “I don’t think anyone disagrees with the approach of looking at funding based on course completions and graduation......

Words: 1577 - Pages: 7

Premium Essay

Human Behaviors: Life Trajectories

...our neighborhood so on weekends my father would have some people over and I would help them with their English and we would all do the practice exam for the citizenship. I was raised to not discriminate and treat everyone as an equal. It did not faze me if the people were Polish, Italian, Ecuadorian; all I knew is that they wanted the same opportunities as my father was working so hard to achieve. All the time spent in classes and doing homework kept me focused on my education for that bigger brighter future my father always talked about. So it was very important to live up to that American Dream that he could not fail at. Both my brother and I got straight A’s all the way through high school and my brother did graduate with honors from Youngstown State University two years ago. So lately all this has been on my mind to keep motivating me to finish school. Life Events A big life event that made an impact in my life happened at a young age and it had to be dealing with death. I saw my grandfather, my only grandparent; slowly wither away until he died. Then one of my closest friends from elementary school did not get to make it to high school and died during Christmas break of leukemia. Again during sophomore year of high school another friend died of AIDS, she had been born with it and lived seventeen years as normally as she possibly could. I remember not crying at my grandfather’s funeral until the dirt started to hit the casket, after everyone except my mom and aunt......

Words: 2479 - Pages: 10

Premium Essay

Presidential Powers and the Constitution

...dispatch (The Federalist No. 70). This feature enables the executive branch to react to threats quickly, and in a manner that cannot be satisfied by congress and its legislative powers. The prerogative powers of the President to unilaterally engage in military action has been upheld in various supreme court cases. In Youngstown Sheet & Tube Co. v. Sawyer, Justice Jackson described a 3-tier test determining the Constitutional validity of Presidential action. The first, and most powerful action is taken when the President acts with the authorization of Congress, the second tier applies when the President acts without congressional authorization or denial. Justice Jackson stated that there is a “zone of twilight” during this type of action, and if factors of “immediate necessity” exist, the Presidents prerogative powers are at there fullest. The third action is when the President “takes measures incompatible with the expressed or implied will of Congress, his power is at its lowest ebb, for then he can rely only upon his own Constitutional powers”, at this level the Presidents actions must be strongly scrutinized under the Constitution. The Youngstown case and the argument made by Justice Jackson clearly state the Presidential power over military action through executive prerogative. The Supreme Court has repeatedly held that the President, when necessary not only has the right but has an obligation to protect the peace of the United States and its......

Words: 1361 - Pages: 6

Free Essay

Ethics & Morals

...society, and culture has their own set of beliefs and norms about what is right and wrong, just, or unjust. Ethics are defined as a set of values that determines an individual’s conduct when it comes to making sound decisions regarding what is right and what is wrong. Now that we have looked at how each term is defined, we need to examine today’s global setting in three different terms: cultural differences, economic conditions, and family backgrounds. Now more than ever, there are greater cultural differences in all areas of life. It used to be that cultures were divided by things such as sections of a town, positions in a company, type of company worked for, and religion. Today these boundaries are crossed. When I was growing up in Youngstown, OH there were certain sections of the town where certain cultures and nationalities lived. There was one area where mainly Italians lived, another where African Americans lived, and still another where the Polish community lived. Today these subdivisions are not nearly as numerous. I have especially noticed this here in Oklahoma City. Every one of my neighbors is of a different cultural background and varying nationalities. Today’s economic conditions around the world are dramatically different than they were even five years ago. No longer is the United States the top economic power in the world. No longer is the dollar the currency everything is based off of. Unemployment is at an all time here and this affects how we are viewed......

Words: 2280 - Pages: 10

Premium Essay

Youngstown Products:

...Youngstown Products: Youngstown Products, a supplier to the automotive industry, had seen its operating margins shrink below 20% as its OEM customers put continued pressure on pricing. Youngstown produced fours products in its plant and decided to eliminate products that no longer contributed positive margins. Details on the fours products are provided below: | A | B | C | D | T otal | Production Volume Units | 10,000 | 8,000 | 6,000 | 4,000 | | Selling Price | $15.00 | $18.00 | $20.00 | $22.00 | | Materials/Unit | $4.00 | $5.00 | $6.00 | $7.00 | | DLH/unit | 0.24 | 0.18 | 0.12 | 0.08 | | Total DLH | 2,400 | 1,440 | 720 | 320 | 4,880 | | | | | | | Plant Overhead | $122,000 | | | | | DL rate/hour | $30/ hr | | | | | Note: DLH is Direct Labor Hours. Plant overhead is total overhead, treated as a fixed cost. Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume, for the calculations to be made below, that plant overhead is a committed (fixed) cost during the year, but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability for the four products. You will need to create an excel spreadsheet or working paper to show your calculations and formulas. 2. If any product is unprofitable with this......

Words: 304 - Pages: 2

Free Essay

Kamazon

...We at computer solutions are a full data communication/networking company located in Youngstown, Ohio. We provide a variety of solutions to many local companies for data and networking needs, from small start-up companies to larger established companies. We believe our years of experience and expertise makes us a perfect fit for this endeavor. We appreciate the opportunity to bid on this project. Our charge is to provide and install a physical network and all related hardware including computer workstations, multi- function printers and all other peripheral devices as required by Kamazon.com. Our services are for a new location comprised of 179 employees, working seven departments, occupying three floors ( floors 1, 2, &3) of an office building in which the first floor has a historical rating. The local telecom service demarcation point is located in the main electrical room in the basement level. The first floor may also need external directional antennas. We estimated that it would take us approximately 30 days, working 9 hour days, with 1 hour off for lunch. The average IT specialist is $38.00 an hour, and the average electrician is 120 an hour, making labor cost 23,280.00. The following equipment will be used to complete the network upgrade, 1790 feet of Cat 6 wiring which is 250 dollars per 1,000, estimated cost 500.00. Two wireless access points $2140, 1 cisco business router $194.00, 3 Hp managed 44 port Ethernet Switches 770.01. Total cost is estimated......

Words: 260 - Pages: 2

Premium Essay

Acct 6273 Final Exam Acct6273 Final Exam

...produced 1,200 units of product. Various costs associated with the production of these units are given below: Direct materials purchased (5,000 yds.) $24,500 Direct materials used in production 4,700 yds. Direct labor cost incurred (1,900 hours) $18,297 a. The materials price variance for the period is: [4 points] Answer: _______________ b. The materials quantity (or usage) variance for the period is: [4 points] Answer: ______________ c. The labor rate variance for the period is: [4 points] Answer: ______________ d. The labor efficiency variance for the period is: [4 points] Answer: ______________ 6. Youngstown Company provides the following standard cost data: Direct Material (3 gallons @ $5 per gallon) $15.00 Direct Labor (2 hours @ $12 per hour) $24.00 During the period, Youngstown Company produced and sold 24,000 units. Following are the amounts of material and labor used to produce the 24,000 units, and their respective actual costs: Direct Material: 73,100 gallons at $5.05 per gallon Direct Labor: 48,000 hours at $12.08 per hour Circle (or highlight) the correct answer. a. The Direct Material price variance was: [3 points] A) F B) U C) 0 b. The Direct Material usage variance was: [3 points] A) F B) U C) 0 c. The Direct Labor rate variance was: [3 points] A) F B) U C) 0 d. The Direct Labor efficiency variance was: [3 points] A) F B) U C) 0 7.......

Words: 1065 - Pages: 5

Free Essay

Health & Social

...The philosophy behind HighScope is based on child development theory and research, originally drawing on the work of Jean Piaget and John Dewey. Since then, the HighScope Curriculum has evolved to include the findings of ongoing cognitive-developmental and brain research. David P. Weikart was an American psychologist and founder of the High/Scope Cognitively-Oriented Curriculum, an early childhood education program. Born in 1931, in Ohio. In 1949, David graduated from South High School in Youngstown. In 1953, Weikart graduated from the Oberlin College in Oberlin, Ohio, with a major in psychology and a minor in zoology. While attending college, Weikart worked as a counsellor and a program director at a YMCA camp in Rochester, New York. While teaching English and biology at Canfield High School in Ohio, Weikart began taking courses in education at Youngstown University in the spring of 1956. In the autumn ofthis year, Weikart enrolled in a University of Michigan joint PhD program in Education and Psychology. During his time at the University of Michigan, Weikart met his future wife, Phyllis Saxton. At that time, Phyllis was a master's candidate in the Department of Health and Physical Education. In 1957, David and Phyllis were married in Shelton, Connecticut. In 1957, Weikart began working part-time as a school psychologist for the Public Schools Michigan. At about the same time, Weikart and his wife began working in leadership positions at several summer camps until they......

Words: 1147 - Pages: 5

Premium Essay

Aloha

...Innovations and organizations. New York: Wiley, 1973. Augustus Abbey is Assistant Professor of Management in the Department of Management and Marketing at the University of Wisconsin, LaCrosse. John W. Dickson is Associate Professor of Management in the Department of Management, College of Business and Public Administration, University of Arizona. ^Academy of Management Journal 1983, Vol. 26, No. 2, 368-376. A MEASURE OF STYLES OF HANDLING INTERPERSONAL CONFLICT' M. AFZALUR RAHIM Youngstown State University Blake and Mouton (1964) first presented a conceptual scheme for classifying the modes (styles) for handling interpersonal conflicts into five types: problem-solving, smoothing, forcing, withdrawal, and sharing. Their scheme was reinterpreted by Thomas (1976). In the present research a conceptualization similar to that of Blake and Mouton and Thomas was used to differentiate styles of handling interpersonal conflict on two basic dimensions: concern for self and for others. 'This study was supported by Youngstown State University Research Council Grant No. 372. 1983 Rahim 369 The first dimension explains the degree (high or low) to which a person attempts to satisfy his/her own concern. The second dimension explains the degree (high or low) to which a person wants to satisfy the concern of others (Rahim & Bonoma, 1979). A combination of the two dimensions results in five specific styles of handling interpersonal confiict as shown in Figure 1. Figure 1 The Styles of......

Words: 3679 - Pages: 15

Premium Essay

Gm520 Week 2

...Marcellus and Utica shale exploration, but mentioned renewable in his address on February 7, 2012, in Steubenville, Ohio. He not only highlighted the importance of supporting and encouraging renewable energy sources in the state, but also emphasized the advantages of waste heat recovery. The governor stopped short of advocating for waste heat's inclusion into the state's Renewable Portfolio Standards (RPS), but reiterated its importance as an energy source. Senate Bill 289 In addition to the comments on waste heat in the State of the State, State Senator Bill Coley (R- Middletown) introduced Senate Bill 289 to help AK Steel, in his district, take advantage of a proposed co-generation project. Co-sponsored by Senator Joe Schiavoni (D-Youngstown), the bill will include co-generation of energy from waste gas in certain industrial processes as part of the RPS defined in Senate Bill 221 of the 127th General Assembly. Many members of the Senate Energy and Public Utilities Committee asked the sponsors at a February 8 hearing if other forms of co-generation could be included, but Sen. Coley said that he did not want to slow down what he hoped would be an otherwise swift passage of the bill by adding more potential technologies. As of publication, the bill was awaiting a second hearing in the Senate Committee. ________________________________________ For more information about any of the topics discussed above, contact Bricker & Eckler’s Gregory......

Words: 1205 - Pages: 5

Premium Essay

Democratic Policing

...failed to care themselves 10. Resolve conflict 11. Provide any other emergency services required in a situation. But due to Societies long experience on continual lackluster between expectation and earnings, Democratic Policing is a widely used approach to policing today not only in Western societies but increasingly around the world. People want to see democratic policing as a process and not as an outcome and they need protection both by police and from police. If we go through the beneath of the democratic policing, we find, it is the result of Bosnia-Herzegovina conflict. The warring factions and several other interested parties came together in Youngstown, Ohio, USA to discuss the principles to guide the development of a new police force in the country. As part of what was later called the “YOUNGSTOWN ACCORD,” seven principles were established to guide policing in both established and emerging democracies across the world. It is believe that the seven principles set forth in this historic document and the operational standards that were defined as necessary to their implementation have widespread application, to stable democracies and emerging democracies alike. These Seven principles were; 1. The police must operate in accordance with democratic principles - This means, in operational context, that the police should be trained in the law, should understand international standards of human rights, and should act in accordance with the criminal code.......

Words: 1152 - Pages: 5

Good Girls | Adrian Collins | Le Paris du Moyen Age - Claude Gauvard, Boris Bove.azw3