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Copy of Colorscope

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by

Alvaro Martinez

on 26 September 2013

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Transcript of Copy of Colorscope

Colorscope
Colorscope also provides prepress and imaging services to marketing and communication industries.
It creates custom color profiles, as well as supports and produces video contents.
Colorscope provides animation and colaboration services
What is Colorscope?
Job Preperation
Scanning
Assembly
Output
Quality Control
Job Preparation
Scanning
Assembly
Output
Quality Control
Work Flow
Why Colorscope?
Quality
Allows customer rework
Better quality control with a smaller workflow
Service
Smaller amount of customers allows for a closer relationship with the clients
Two-Stage Costing System
Resource Drivers

Rent = floor space (square feet)

Others = capacity labor-hours
$30,000 of rent divided into 15,000 sq. ft. of floor space
Calculated the % of capacity that each cost pool consumed and multiplied each cost pool by total cost of Others ($20,000)
Predetermined Overhead Rate
Total OH/Capacity Labor-Hours
Hourly OH rate for each cost pool
Job 61001 Profitability
Customer 16 Profitability
Recommendations:
Rework ensures high quality. However, it comes at a high cost.
Colorscope should charge for customer initiated rework in order to cover costs
Train employees to decrease house errors.
Key Takeaways
By allocating period costs to individual jobs, you can better determine the profitability of jobs
The resource costs should be matched with their specific resource drivers
Companies can't always focus strictly on the bottom line. For example, Colorscope sacrifices profits to maintain their competitive advantage of high quality and service by allowing rework on projects.
ACCT 3001
Patrick O'Brien, Erin O'Connor, Phil Meyer, Cole Hystead, Gadisa Berkessa, and Gabrielle Roberts
Full transcript