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each department Discuss the development of a cost driver(s) that allocating the indirect costs. d. ATC 123 Research Assignment Using reak-world data from Coca-Cola Bolin o. Consolidated Use the 2014 Form 10-K (year ended on January 1. 2014) for Coca-Cola Bottling Co. to complete the requirements below. Be aware that Coca-Cola Bottling Co. Consolidated separate company from The Coca-Cola Company (KO), so do not contuse them. T Form 10-K, you can use the EDGAR system (see Appendix A at the back of this text for tions), or it can be found under the "Investor Relations" link on the company's corporate w www.cokeconsolidated.com. The company's Form 10-K can be found under "SEC Filin ted COKE) is o obtain the ruc ebsite ure to read carefully the following sections of the document Under "Ite em I., Business," read the subsection titled "Seasonality" on page 13 Under "Item 2. Properties," on page 23 Accounting Poli- In the footnotes section of the otes section of the report, under "Note 1-Summary of Significant Acco cies," read the following subsections: "Marketing Programs and Sales Incentives" on page 70 "Cost of Sales" on page 71 "Selling. Delivery and Administrative Expenses" on page 71 Shipping and Handling Costs" on page 71 Required a. Does COKE consider shipping and handling costs and ad vertising costs to be direct or indirect costs in relation to the manufacturing of its products? Explain. b. Assume that when COKE ships orders of finished goods from manufacturing locations to sales distribution centers each shipment includes several different products such as Coca-Cola, Sprite, Dr Pepper, and Seagrams Ginger Ale. If COKE wanted to allocate the shipping costs among the various products, what would be an appropriate cost driver? Explain the rationale for your choice. c. Based on COKE's discussion of the seasonality of its business, should the depreciation of produc- tion equipment recorded in a given month be based on the volume of drinks produced that month, or should the depreciation for each month be 1/12th of the estimated annual depreciation COKE expects to incur? Explain your answer As liem 2. Properties indicates, COKE appears to have sig Approximately what percentage of available production capacity was not being used byC 2014? What are some possible reasons COKE might want to have this much excess cap Explain. d. nificant excess capacity at its p ants. OKE in acity each department Discuss the development of a cost driver(s) that allocating the indirect costs. d. ATC 123 Research Assignment Using reak-world data from Coca-Cola Bolin o. Consolidated Use the 2014 Form 10-K (year ended on January 1. 2014) for Coca-Cola Bottling Co. to complete the requirements below. Be aware that Coca-Cola Bottling Co. Consolidated separate company from The Coca-Cola Company (KO), so do not contuse them. T Form 10-K, you can use the EDGAR system (see Appendix A at the back of this text for tions), or it can be found under the "Investor Relations" link on the company's corporate w www.cokeconsolidated.com. The company's Form 10-K can be found under "SEC Filin ted COKE) is o obtain the ruc ebsite ure to read carefully the following sections of the document Under "Ite em I., Business," read the subsection titled "Seasonality" on page 13 Under "Item 2. Properties," on page 23 Accounting Poli- In the footnotes section of the otes section of the report, under "Note 1-Summary of Significant Acco cies," read the following subsections: "Marketing Programs and Sales Incentives" on page 70 "Cost of Sales" on page 71 "Selling. Delivery and Administrative Expenses" on page 71 Shipping and Handling Costs" on page 71 Required a. Does COKE consider shipping and handling costs and ad vertising costs to be direct or indirect costs in relation to the manufacturing of its products? Explain. b. Assume that when COKE ships orders of finished goods from manufacturing locations to sales distribution centers each shipment includes several different products such as Coca-Cola, Sprite, Dr Pepper, and Seagrams Ginger Ale. If COKE wanted to allocate the shipping costs among the various products, what would be an appropriate cost driver? Explain the rationale for your choice. c. Based on COKE's discussion of the seasonality of its business, should the depreciation of produc- tion equipment recorded in a given month be based on the volume of drinks produced that month, or should the depreciation for each month be 1/12th of the estimated annual depreciation COKE expects to incur? Explain your answer As liem 2. Properties indicates, COKE appears to have sig Approximately what percentage of available production capacity was not being used byC 2014? What are some possible reasons COKE might want to have this much excess cap Explain. d. nificant excess capacity at its p ants. OKE in acity

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