Classic pen company
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CLASSIC PEN COMPANY PowerPoint PPT Presentation


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CLASSIC PEN COMPANY. SUMMARY BACKGROUND. Produced 2 Pens- Blue & Black. Started Producing Red and Purple Pens As Well. The Profits Started to Decrease With the Introduction of 4 Colors. All pens produced in one factory.

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CLASSIC PEN COMPANY

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Classic pen company

CLASSIC PEN COMPANY


Summary background

SUMMARY BACKGROUND

  • Produced 2 Pens- Blue & Black.

  • Started Producing Red and Purple Pens As Well.

  • The Profits Started to Decrease With the Introduction of 4 Colors.

  • All pens produced in one factory.

  • Ink is filled in the pens after the colors are mixed. This makes machinery to be cleaned during transition from one color to another.

  • Currently applies overhead on the basis of direct labor cost.


Income statement

Income Statement


Activities and activity rates

Activities and Activity Rates


First stage allocation

First Stage Allocation


First stage allocation1

First Stage Allocation


Activity rates

Activity Rates


Activity rates1

Activity Rates


Second stage allocation

Second Stage Allocation


Second stage allocation1

Second Stage Allocation


Product costing

Product Costing


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