Activity Based Costing of City Services Essay

Required 1. The new mayor became elected with the pledge of rapid privatization. But instead of downright privatization, his first action was to ask for personify estimation of normal service. Why do you think he asked for cost estimation instead of privatizing the public service right away? Was it a sensible action?2. Existing DOT employees were allowed to bid against clannish businesses. Was it a sensible decision? For example, they could have been just fired.3. How well did the project team implement rudiment for estimating the cost of pothole fill up? Do you agree with the manner in which they treated equipment cost and senseless capacity?4. Should the city have allowed the municipal employees to see the ABC estimates and given them the opportunity to reduce their cost?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 y ou think thats a good idea? What are the concerns the city should consider?Colorscope, Inc.Instruction 1. What was the value statement of Colorscope to customers? In otherwise words, why would any customer go to Colorscope instead of other large printers?We are going to crumble cost structure of Colorscope using a departmental cost allocation method. This is a two point system. First categorize cost to different production centers (= departments = Job prep, see, Assembly, Output, and Quality). then(prenominal) allocate cost in each center to a job in the second level.2. Complete the following first stage allocation. Job prep Wages $8,000 Depreciation Rent Others* jibe MOH DLH POHR Floor space * allocated by DLH Scanning Assembly Output Quality 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 Quality Net profits62001 I dle Total Profit Then summarize 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 consequence of reworks? (Hint compare the profits before and after reworks.)5. What would you recommend to Colorscope Inc. to improve their business?