Analysis of Direct and Indirect Costs

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:

5. Analyze expenses:
   o Analyze and provide detailed examples of the following costs that both Superstar Solar, Inc. and SolarCal will incur when contracting with the government.
   o Labor costs.
   o Manufacturing costs.
   o Research and development.
   o General administrative expenses.
6. Analyze direct and indirect costs:
   o From the previous section, define and indicate which costs will be direct and indirect.
   o Direct costs.
    Labor.
    Manufacturing.
    Research and development.
    General and administrative expenses.
   o Indirect Costs
    Labor.
    Manufacturing.
    Research and development.
    General and administrative expenses.
7. Allocation Methods
   o 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.
   o Units of production method.
   o Machine hour method.
   o Direct labor hour method.
   o Direct labor cost method