Analyze the movie production activities involved in creating and distributing the movie. Identify the following key job costing elements (Items 1 5 below) in terms of Disney movie production and distribution activities. Give an example of each. Provide support to justify your answer as appropriate.
- Identify an example of Direct Labor, Direct Material and Manufacturing Overhead in a Disney Movie Studio project.
- Identify a Fixed Cost and a Variable Cost.
- In order to establish a predetermined overhead rate, you must determine an allocation base. Do you feel DL hours, DL dollars or Machine hours is most appropriate? Why?
- Give an example of Actual Manufacturing Overhead cost elements in the production and distributions of a Disney movie.
- Do you think the concept of WIP applies for Disney movie production and distribution activities?