ASHFORD BUS 630 Week 3 Assignment Glaser Health Products
Glaser Health Products.
Complete Case 5A (Glaser Health Products) in Chapter 5. Glaser Health Products
of Ranier Falls, Georgia, is organized functionally into three divisions:
Operations, Sales, and Administrative. Purchasing, receiving, materials and
production control, manufacturing, factory personnel, inventory stores, and
shipping activities are under the control of the vice-president for operations,
George Gottlieb. Advertising, market research, and sales are the responsibility
of the vice-president for sales, Jake Bogan. Accounting, budgeting, the firm’s
computer center, and general office management are delegated to the corporate
controller (Administrative), Charlie Kaplan. The following cost categories are
found in the company as a whole:
(a)Depreciation on
factory equipment.
(b)Depreciation on
office equipment.
(c)Depreciation on
factory building.
(d)Advertising
manager’s salary.
(e)Assembly
foreman’s salary.
(f)Salespersons’
salaries.
(g)Salespersons’
travel expenses.
(h)Supplies for the
Machining Department.
(i)Advertising
supplies used.
(j)Electricity for
the Assembly Department.
(k)Lost materials
(scrap) in a Machining Department.
(l)Direct labor in
the Assembly Department.
(m)Supplies for the
sales office.
(n)Sales
commissions.
(o)Packing
supplies.
(p)Cost of hiring
new employees.
(q)Payroll fringe
benefits for workers in the Shipping Department.
(r)Supplies for
Production Scheduling.
(s)Cost of
repairing parts improperly manufactured in the Machining Department.
(t)Paint for the
Assembly Department.
(u)Heat, light, and
power for the factory.
(v)Leasing of
computer equipment for the Accounting Department.
Required:
1.Identify each of
the costs with the appropriate division: Operations, Sales, Administrative.
2.Identify each of
the costs with one of the following:
(a)Unit-level
activities. (c)Product-level activities.
(b)Batch-level
activities. (d)Facility-level activities.
Organize these classifications by division:
Operations, Sales, Administrative.
3.Specify an
appropriate cost driver for tracing costs associated with the various levels of
activities to
the next cost objective or products, whichever is
appropriate.
4.Glaser Health
Products is interested in using activity-based costing to identify as many
costs as possible
with the products. These costs will be used for
planning and control decisions rather than for inventory
valuation. The controller decided that all
operation costs will be related to products but only those sales and
administrative costs that are classified as
unit-level, batch-level, or product-level costs should be related to
products. Using preliminary stage cost drivers,
explain how individual items of costs will be traced to activity
groupings.
5.Using primary
stage cost drivers, show how the costs should be related to products.
6.Explain why it
is necessary to use preliminary stage and primary stage cost drivers.
In this case, management needs assistance in
evaluating and classifying costs identified within Glaser Health Products in
order to implement an activity-based costing system. Please address Questions 1
through 6 at the end of the case. Based on the case questions, you are required
to provide a two to four double-spaced written report providing management with
the necessary guidance in implementing an activity-based costing system. The
written report should be properly formatted according to APA guidelines and
demonstrate research and critical thinking skills. Explanations and
recommendations should be supported by at least 3 scholarly sources from the
Ashford Library or other external sources, excluding the textbook.
For Questions 1 through 3, create a chart to
classify and identify a cost driver for each of the costs provided in the text.
The chart should be included as an appendix to the written report. Explanations
of the classifications and identifications within the chart should be included
within the written report, supported by references to the appendix.
Questions 4 through 6 should be addressed in fully
developed explanations/instructions as part of your written report. The written
analysis should be supported by at least 3 scholarly sources, excluding the
textbook.
Week 3 Written Assignment should:
Demonstrate graduate level work including
appropriate research and critical thinking skills.
Be presented as a written analysis (not a
question/answer format).
Incorporate case questions into the overall
analysis.
Follow APA formatting guidelines including title
page, reference page and in-text citations.
Consists of two to four double-spaced pages of
content.
Provide at least
3 scholarly sources, excluding the textbook.
