Analysis of Direct and Indirect Costs

Continuation of the previous assignments where you will focus more on your company, Superstar Solar, Inc., and SolarCal. You will make more assumptions on specific types of costs.

In order to complete this assignment, refer to the scenario in the Introduction of New Solar Company Assignment where you discussed SolarCal and your company, as well as the scenarios and readings from previous weeks.

· Refer to your Week 7 Activity where you created a Work Breakdown Structure to assist you in completing this assignment.

· Refer to the rubric for this assignment to become familiar with how your paper will be graded.

· Refer to scenarios and readings from previous weeks to complete this assignment.

· Note: It is essential that you review your case analyses when completing this assignment.

4. Week 7 Case Analysis: Analysis of Direct Material and Other Direct Costs [DOCX] .
5. Week 8 Case Analysis: Overhead Expenses and General and Administrative Expenses [DOCX] .

Compare your company with SolarCal relative to the price of acquisition, semi-variable costs, and allocated direct and indirect costs of the solar power grids. Justify the response.

Instructions

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.

1. Labor.
2. Manufacturing.
3. Research and development.
4. General and administrative expenses.

. Indirect Costs

2. Labor.
3. Manufacturing.
4. Research and development.
5. General and administrative expenses.

· Allocation Methods

· Discuss the following cost allocation methods and indicate which ones 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.