Activity Based Costing of City Services Essay

Required 1. The new mayor became elected with the pledge of quick privatization. But instead of downright privatization, his premier action was to ask for address estimation of public service. Why do you think he asked for salute estimation instead of privatizing the public service right away? Was it a sensible action?2. Existing DOT employees were allowed to bid against private commercees. Was it a sensible decision? For example, they could have been just fired.3. How well did the project team implement ABC for estimating the price of pothole choice? Do you chink with the manner in which they treated equipment cost and excess capametropolis?4. Should the city have allowed the municipal employees to see the ABC estimates and given them the opportunity to focus their costs?5. Calculate the bids the city workers will issue for fixing potholes in the Northwest and Northeast quadrants.6. The new mayor wants to continue to outsource city services through competitive bidding. Do you think thats a good idea? What are the concerns the city should consider?Colorscope, Inc.Instruction 1. What was the look upon statement of Colorscope to customers? In other words, why would any customer go to Colorscope instead of other large printers?We are going to analyze cost structure of Colorscope using a departmental cost allocation method. This is a two stage system. First categorize cost to different end product concerns (= departments = line of business prep, Scanning, assemblage, Output, and reference). Then allocate cost in each center to a job in the second stage.2. Complete the following(a) first stage allocation. Job prep Wages $8,000 Depreciation Rent Others* tote up MOH DLH POHR Floor space * allocated by DLH Scanning Assembly Output attribute Idle Total3. Analyze the job profitability by filling out the following sheet with dollars. (Hint Add labor cost and allocated MOH.) Job 61001 61002 Revenue Materials Job prep $9,600 Scanning Assembly Output Qual ity Net profits62001 Idle Total Profit Then retell your findings.4. Analyze the rework cost by filling out the following sheet for the jobs with a rework. Job 61001 61002 Materials Job prep Scanning Assembly Output Quality Net profits62001 Total What is the financial resultant role of reworks? (Hint compare the profits before and after reworks.)5. What would you recommend to Colorscope Inc. to improve their business?