Wine and Probable Cost Driver Essay Example for Free

Wine and Probable terms Driver EssayPeter Catalanos Verde Vineyards in Oakville, California produces three varieties of wine-coloured Merlot, Viognier, and Pinot Noir. His winemaster, Kyle Ward, has identified the following activities as cost pools for accumulating overhead and assigning it to products. For each of Verdes fifteen activity cost pools, identify a verisimilar cost driver that might be used to assign overhead costs to its three wine varieties. 1. Culling and re go downing. Dead or overcrowded vines be culled, and new vines argon planted or relocated. (Separate vineyards by variety. ) Labor instant 2. Tying.The posts and wires are reset, and vines are tied to the wires for the dormant season. Labor hour 3. Trimming. At the end of the harvest the vines are cut and trimmed back in preparation for the next season. Labor hour 4. Spraying. The vines are sprayed with chemicals for egis against insects and fungi. Gallons of chemical 5. Harvesting. The grapes are hand-picked, placed in carts, and transported to the crushers. Number of cartfuls or labor hours 6. Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines which remove stems and gently crush the grapes.Number of cartfuls 7. Pressing and filtering. The crushed grapes are transferred to presses which automatically remove the juices and filter out bulk and impurities. Gallons of juice 8. Fermentation. The grape juice, by variety, is fermented in either stainless-steel tanks or oak barrels. Gallons of juice 9. Aging. The wines are aged in either stainless-steel tanks or oak barrels for whiz to three years depending on variety. Gallons of wine or months of aging 10. Bottling and corking. Bottles are machine-filled and corked. Number of nursing bottles 11. Labeling and boxing. Each bottle is labeled, as is each nine-bottle case, with the name of the vintner, vintage, and variety. . Of bottles 12. Storing. Packaged and bo xed bottles are stored awaiting shipment. of boxes 13. Shipping. The wine is shipped to distributors and private retailers. of shipments 14. Heating and air-conditioning of plant and offices. Number of gallons processed 15. Maintenance of buildings and equipment. Printing, repairs, replacements, and general maintenance are performed in the off-season. of gallons processed.