a) Identify the cost allocation system that would benefit this company most. Justify your response. b) Does this cost allocation system meet management planning and control goals? Explain. c) What are the ethical implications that should be considered with this cost allocation system? d) Describe the ethical implications of direct costs versus indirect costs. What considerations should be made when selecting one of these two?

Budgeted Unit Actual Volume Flexible Budget Amounts Amount Revenues $ 21.00 47,000 $987,000 Variable Costs DM-Plastic 4.50 47000 211,500 DM-Cedar 0.75 47000 35250 Direct Manuf. Labor 6.00 47000 282000 Variable Manuf. Overhead 0.06 47000 2820 Total Variable Manufacturing Costs 11.31 89676 531570 Fixed Manufacturing Overhead 95000 Total Manufacturing Costs 626570 Gross Margin $360,430