At the completion of this case learners should be able to demonstrate their ability to build a volume-based income statement by applying concepts, such as, the calculation of a manufacturing overhead using direct labour costs, machine hours and direct labour hours. In addition, learners should be able to apply the direct method in the allocation of service department expenses over multiple profit centers. Students should also be able to demonstrate their understanding of activity-based costing (ABC) in the analysis of an organization’s costs. Finally, learners should be able to apply the analytical concepts of differential analysis to a business decision. This case is intended as an integrated final case in the fundamentals of cost accounting.