Page 60 - DCOM206_COST_ACCOUNTING_II

Unit 3: Absorption Costing and Marginal Costing

This program alternative would accomplish, during the daytime and night, and on Notes
Saturdays, the objectives of increasing police visibility downtown, of enhancing Dayton’s
innovative image, and of providing traffic control and crowd management to the downtown
area, as well as to areas of special assignment. This alternative represents a total program
cost of $38,225.
Cost
The following represents annual costs for the two implementation alternatives outlined
in Section II.
Purchase & Fitting of Horse Alternative A Alternative B
Purchase of horses $1,200 $2,400
Riding gear 560 1,400
Maintenance
Feed 2,190 4,380
Bedding 36 72
Farrier (blacksmith) fees 600 1,200
Veterinarian fees 125 250
Stable rental 900 1,800
Stable cleaning & grooming 4,000 – 10,465 4,000 – 10,465
Training
Training of horses 600 1,200
Training of riders 1,850 1,850
Miscellaneous
Trailer 950 950
Uniforms 1,140 2,850
Street Cleaning Costs - 9,405
Total Program Cost $14,151 – $20,616 $31,757 – $38,222

APPENDIX: Cost Detail
Horses
Cost is computed at $400 per horse. This estimate is derived from quotes by local stable
owners and several police departments currently employing mounted patrol.
Riding gear

For Five Riders For Two Riders
Saddle with Fittings $ 885 $ 354
Bridles with Bits 265 106
Pads 80 32
Brushes and Curries 35 14
Breast Collars 135 54
Total $ 1,400 $ 560

Contd...

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