Tour #1: Coffman

Rating: ****

Company Overview: A manufacturer of hardwood stair parts , such as handrails, posts, and balusters. An excellent tour with great images and descriptions of process steps.

Managerial Accounting Topic(s): Allocation of Overhead

Web Site: http://www.coffmanstairs.com/

To Take the Tour: From the home page, select "About Coffman."

Discussion Question: After taking the factory plant tour, answer the following: Direct Labor continues to be the most common way to allocate overhead costs under traditional costing. Based on the plant tour of Coffman, first identify possible manufacturing overhead costs. Next, comment on the appropriateness of using direct labor hours as the cost driver. Finally, make a recommendation of a cost driver that might be more appropriate to allocate overhead costs.