Tour #1: Corbin

Rating: ***½

Company Overview: A manufacturer of motorcycle saddles and unique fiberglass furnishings.

Managerial Accounting Topic(s): handcrafted manufacturing

Web Site: www.corbin.com

To Take the Tour: From the home page, select the “Factory” tab then click on “Factory Tour” and watch the “Full Tour.”

Question : Corbin manufactures motorcycle saddles. First identify possible overhead costs for the company. Next suggest an ABC system that would help allocate overhead costs in a meaningful manner. Also, comment on the implications of instituting such a system on the work force, information system, etc.

Tour #2: Finkl Steel

Rating: ****

Company Overview: Finkl Steel is an urban steel manufacturer located in the Chicago area.

Managerial Accounting Topic(s): continuous manufacturing process

Web Site: www.finkl.com

To Take the Tour: From the home page, select “Tour”

Question : Based on the virtual tour of Finkl Steel, discuss the advantages of ABC versus traditional costing (using Direct Labor Hours). Next, identify what you think may be the most appropriate cost drivers for the major processes in the production of steel.