Case: Explore the website of SecondBite <https://secondbite.org/> and watch carefully the following case study interview: <https://youtu.be/q4UBr1ePB3k> SecondBite is a charity based in Australia, whose objective is to rescue and deliver nutritious food free of charge to those in need. SecondBite has separate operating divisions: one for the collection of food from the charity partners and Coles retail stores, and another one for the delivery of the nutritious food collected to the locations where people in need are. The direct monthly costs of the two operating divisions are respectively $489,860 for ‘food collection’ and$998,270 for ‘food delivery’. SecondBite benefits from two support departments: one monitors the quality and selection of nutritious food collected from SecondBite’s charity partners. It also checks the conditions of storage of such food in the trucks during travelling time and contributes to design and implement checks on the quality, timing and reliability of the data processed through the dashboards (‘quality control’). The other support department is tasked with the implementation of dashboards, and with the equipment of the fleet of vehicles with tracking, safety and security technological devices, which would also allow to track the quality of the food storage conditions during travelling time (‘information systems’). The monthly costs of the two support departments are as follows (Table 1): ‘Information systems’ ‘Quality control’ Labour ($) $180,000 $50,000 Supervision ($) $24,400 $2,700 Hardware depreciation ($) $30,000 $20,000 + quality checks on dashboards’ information + implementation and setting of technological devices Total $234,400 $72,700 SecondBite uses number of quality checks/interventions to allocate ‘quality control’ costs and processing time (number of hours) to allocate ‘information systems’ costs. The following budgeted data are monthly available (Table 2): Table 2. Drivers of allocation of the support departments’ costs. Operating departments Support departments Food collection Food delivery Quality control Information systems Use of ‘quality control’ (# of monthly quality checks) 42 28 21 Use of ‘information systems’ (# hours of processing time) 1,920 1,600 320 Allocate the support departments’ costs to the operating departments of SecondBite using the direct method. Show all calculations (use two decimals).
Case: Explore the website of SecondBite <https://secondbite.org/> and watch carefully the following case study interview: <https://youtu.be/q4UBr1ePB3k>
SecondBite is a charity based in Australia, whose objective is to rescue and deliver nutritious food free of charge to those in need. SecondBite has separate operating divisions: one for the collection of food from the charity partners and Coles retail stores, and another one for the delivery of the nutritious food collected to the locations where people in need are. The direct monthly costs of the two operating divisions are respectively $489,860 for ‘food collection’ and
$998,270 for ‘food delivery’.
SecondBite benefits from two support departments: one monitors the quality and selection of nutritious food collected from SecondBite’s charity partners. It also checks the conditions of storage of such food in the trucks during travelling time and contributes to design and implement checks on the quality, timing and reliability of the data processed through the dashboards (‘quality control’). The other support department is tasked with the implementation of dashboards, and with the equipment of the fleet of vehicles with tracking, safety and security technological devices, which would also allow to track the quality of the food storage conditions during travelling time (‘information systems’). The monthly costs of the two support departments are as follows (Table 1):
|
|
‘Information systems’ |
‘Quality control’ |
|
Labour ($) |
$180,000 |
$50,000 |
|
Supervision ($) |
$24,400 |
$2,700 |
|
Hardware |
$30,000 |
$20,000 |
|
|
+ quality checks on dashboards’ information |
+ implementation and setting of technological devices |
|
Total |
$234,400 |
$72,700 |
SecondBite uses number of quality checks/interventions to allocate ‘quality control’ costs and processing time (number of hours) to allocate ‘information systems’ costs. The following budgeted data are monthly available (Table 2):
Table 2. Drivers of allocation of the support departments’ costs.
|
|
Operating departments |
Support departments |
||
|
Food collection |
Food delivery |
Quality control |
Information systems |
|
|
Use of ‘quality control’ (# of monthly quality checks) |
42 |
28 |
|
21 |
|
Use of ‘information systems’ (# hours of processing time) |
1,920 |
1,600 |
320 |
|
- Allocate the support departments’ costs to the operating departments of SecondBite using the direct method. Show all calculations (use two decimals).
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