Compare your company with SolarCal relative to the price of acquisition, semi-variable costs, and allocated direct and indirect costs of the drone navigation system. Justify the response.
Write a 2–3 page paper in which you:
Analyze expenses:
Analyze and provide detailed examples of the following costs that both Superstar Solar, Inc. and SolarCal will incur when contracting with the government.
Labor costs.
Manufacturing costs.
Research and development.
General administrative expenses.
Analyze direct and indirect costs:
From the previous section, define and indicate which costs will be direct and indirect.
Direct costs.
Labor.
Manufacturing.
Research and development.
General and administrative expenses.
Indirect Costs
Labor.
Manufacturing.
Research and development.
General and administrative expenses.
Allocation Methods
Discuss the following cost allocation methods and indicate which ones that Superstar Solar, Inc., and SolarCal would use. Remember to provide a rationale for each of these methods.
Units of production method.
Machine hour method.
Direct labor hour method.
Direct labor cost method.
