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PELLYKW2A4case - 17-1 1 Lines 17 and 11 Semi variable costs...

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17-1 1. Lines 17 and 11- Semi variable costs allocations are based on direct labor hours – this is assumptive that each employee works the same number of hours each week—this is inaccurate because when changes are made to the employee schedule the allocations of the costs will change Line 15- The consultant doesn’t explain how to change the cost accounting system to more accurately reflect each department uses of resources Lines 16 to 19- Agreed, why does he use Volkswagon standards when the company is GM?
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