1 / 11

CLASSIC PEN COMPANY

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.

Download Presentation

CLASSIC PEN COMPANY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. CLASSIC PEN COMPANY

  2. 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.

  3. Income Statement

  4. Activities and Activity Rates

  5. First Stage Allocation

  6. First Stage Allocation

  7. Activity Rates

  8. Activity Rates

  9. Second Stage Allocation

  10. Second Stage Allocation

  11. Product Costing

More Related