For each of the following activities, identify whether process costing or job order costing should be used. Also indicate how manufacturing overhead should be applied to the product - whether traditional costing with a predetermined overhead rate or ABC costing should be used. Where ABC is relevant, identify appropriate cost pools and cost drivers.

a) Weller’s Carriage House is a wedding reception venue with services including food catering and servicing, decorations, and valet services.

b) Jones Manufacturing has 3 product lines: carpeting, area rugs, and bed sheets. Its factory facility has different production lines for each product housed under one roof.

c) Amish Furniture Company builds made-to-order tables, chairs, and cabinetry. Its strategy is to provide superior customer service and product quality.

d) General Jim’s Automatic Transmission Company manufactures 6- and 10-speed automobile transmissions. Its factory facility has departments for machining the transmission case casting, valve body machining, gear production, and assembly. The case casting and valve body machining areas are highly automated processes. The gear production area utilizes CNC machines configured in U-cells. The assembly line is labor intensive.

e) Benny’s Bakery has a wide variety of donuts and breads that it provides to customers each day. Benny’s also takes orders for specialty cakes.

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