Homework
This homework is a continuation of the previous homework where you will focus more on your company, Universal Drones Inc., and VectorCal. You will make more assumptions on specific types of costs.
Compare your company with VectorCal relative to the price of the acquisition, semi-variable costs, and allocated direct and indirect costs of the drone navigation system. Justify the response.
Instructions
Write a 2 to 3 pages paper in which you:
Analysis of Universal Drones, Inc.'s expenses
Analyze and provide examples in detail the following costs that both Universal Drones and VectorCal will incur when contracting with the government.
Labor costs.
Manufacturing costs.
Research and development.
General administrative expenses.
Analysis of Direct and Indirect Costs
From the previous section define and indicate which costs will be direct and indirect.
Direct costs.
Labor.
Manufacturing.
Research and development.
General & administrative expenses.
Indirect Costs
Labor.
Manufacturing.
Research and development.
General & administrative expenses.
Allocation Methods
Discuss the following cost allocation methods and indicate which ones that Universal Drones, Inc., and VectorCal would use. Remember to provide a rationale for each of these methods.
Units of production method.
Machine hour method.
Direct labor hour method.
Direct labor cost method.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.