Tour #1:  The Olive Press

Rating: ****

Company Overview: As stated on the company's website, the Olive Press is a "completely unique facility designed to meet the custom pressing needs of commercial producers, growers with small harvests, and hobbyists wishing to create "estate" olive oil from home grown olives."

Managerial Accounting Topics: manufacturing technology, food processing

Web Site: http://www.theolivepress.com/default.asp

To Learn More about the Company: From the home page, click on the following links:

1. About Us - Read the descriptions of the company's products.
2. About Us and then About Olive Oil - Watch a video that shows how the company makes its olive oil. (You may also access this video at http://www.theolivepress.com/content.asp?topic=About+Olive+Oil.)

Discussion Questions:

1. What types of specific factory overhead costs might be incurred by The Olive Press?
2. If The Olive Press prepared a flexible budget, which specific types of costs might be classified as variable on that budget?
3. What types of costs might be classified as fixed?
4. On what basis might factory overhead costs be applied to the olive oil as it is produced?