Cost Accounting and Decision Making (ACC2CAD) Semester 1, 2013
Mini case study 5: Cost Allocation
Due: Submit your report via LMS before 5 pm, Friday, 24th May 2013. (Penalty will apply to late submissions. 1 mark will be deducted with each day’s delay)
This mini case study is designed to encompass the following graduate skills/capabilities, written communication, critical thinking, team work and presentation of information/information literacy.
THIS IS A TEAM ASSIGNMENT. Your team may have 2 or 3 members and the team members can be from any of the ACC2CAD tutorials. Each team submits only one assignment. Please ensure you include your team members’ names and student numbers on the cover sheet (refer to p.3). Individuals who want to submit the assignment on their own are also allowed in Case Study 5 and no group penalty will be applied.
Delaware, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Julie Waltz, a pricing analyst in the accounting department, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Julie is considering two different methods of the departmental allocation approach to allocate overhead costs: the direct method and the step down method. She assembled the following data from the two service departments, information systems and facilities.
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Cost Accounting and Decision Making (ACC2CAD) Semester 1, 2013 Mini case study 5: Cost Allocation th Due: Submit your report via LMS before 5 pm, Friday, 24 May 2013. (Penalty will apply to late submissions. 1 mark will be deducted with each day’s delay) This mini case study is designed to encompass the following graduate skills/capabilities, written communication, critical thinking, team work and presentation of information/information literacy. THIS IS A TEAM ASSIGNMENT. Your team may have 2 or 3 members and the team members can be from any of the ACC2CAD tutorials. Each team submits only one assignment. Please ensure you include your team members’ names and student numbers on the cover sheet (refer to p.3). Individuals who want to submit the assignment on their own are also allowed in Case Study 5 and no group penalty will be applied. Delaware, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Julie Waltz, a pricing analyst in the accounting department, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Julie is considering two different methods of the departmental allocation approach to allocate overhead costs: the direct method and the step down method. She assembled the following data from the two service departments, information systems and facilities. 1Service Departments Production Departments Info. Computer Info. Systems software Systems Facilities programming consulting training Budgeted overhead $80,000 $45,000 $150,000 $190,000 $135,000 Info. Systems (hours)* 200 1,200 600 1,000 Facilities (sq feet)** 200 400 600 …
Attachments:
CaseStudy5.pdf