Marlowe, Inc. produces and sells two different cushion lines: Fluffy & Firm.
The company produces these products in a joint process across two departments (sewing and assembly). The sewing department is highly automated with the use of sewing machines and robotic arms that move materials from station to station. The assembly department requires more labor intensive activities. The assembly department is not automated, because the robots have not been programmed to properly handle the delicate stuffing materials. In fact, the robots would shove the stuffing directly through the fabric. Prior to Black Friday (peak cushion season), Marlowe engineers attempted to reprogram some of the robots to stuff cushions and save money on overtime, but were still unsuccessful.
The following is a listing of some of the costs incurred at Marlowe:
Materials (direct & indirect) Fabric, stuffing (polyester fiber fill) or foam, thread, zipper/button/Velcro closing, tags with care instructions & material information
Labor (direct & indirect): cutting, sewing, assemble cushion (turn material right side out, stuff, then close), testing cushion (QC), supervisors, marketing, accounting, sales, etc.
Overhead: rent, insurance, electricity, garbage removal, etc.
Would Job Costing or Process Costing be more appropriate for this company?