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Acc 207 Final Project consist of the creation of a quantitative analysis with a memo to management. Can I get some ideas of how to

Acc 207 Final Project consist of the creation of a quantitative analysis with a memo to management. Can I get some ideas of how to write this memo?

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QUESTION: NEEDS TO BE SOLVED: (2-3 PAGES ANSWERING THE FOLLOWING QUESTIONS)

For Milestone Three, you will make a recommendation to the MDE management team on whether the company should switch from process costing to activitybased costing (ABC) for the bird feeder division. This is an exploratory discussion, but management would like to know more about the differences between the two costing systems and if a different costing system might work better for the company. Submit a 23 page Word document that addresses all of the critical elements below of Section III. Specifically, the following critical elements must be addressed: III. Main Costing Systems Activity-Based Costing vs. Process Costing 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? Guidelines for Submission: Your paper must be submitted as a 23 page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins.

Below are tables with calculations figured out already. I just need help writing the 2-3 pages answering the above questions. thank you!

CHARTS BELOW TO REFER SO YOU CAN ANSWER THE ABOVE QUESTIONS

ACC 207 MDE Manufacturing Budget: Bird Feeder

I. Sales and Manufacturing Expenses: Budget and Actual(2014)

You will use this table to complete Milestones One and Two.

Budget ($)

Actual ($)

Sales

1,050,000

991,700

Expenses

Materials Cedar

225,000

248,160

Materials Plastic

37,500

37,741

Factory Worker Labor

300,000

332,760

Materials Indirect

3,000

2,585

Factory Depreciation

78,000

78,000

Factory Utilities

12,000

12,000

Factory Maintenance and Repairs

5,000

4,500

Shipping ($2.25/each)

112,500

105,750

Sales Commissions ($2.00/unit sold)

100,000

94,000

Office Rent

12,000

12,000

Advertising

20,000

20,000

Liability insurance

5,000

5,000

Office Depreciation

1,000

1,000

Office Salaries

48,000

48,000

Total Expenses

959,000

1,001,496

II. Contribution Margin: Static Budget and Actual Results (2014)

You will use this table to complete Milestone Two.

Actual Results

Static Budget Amount

Units Sold

47,000

50,000

Revenues ($)

991,700

1,050,000

Manufacturing Costs ($)

Variable

621,246

565,500

Fixed

94,500

95,000

Gross Margin

275,954

389,500

III. Standard Variable Manufacturing Costs (2014)

You will use this table to complete Milestone Two.

Static Budget Costs

Standard Input

Direct Materials: Cedar

225,000

3.0 ft/unit

Direct Materials: Plastic

37,500

1.0 ft/unit

Direct Manufacturing Labor

300,000

0.5 hrs/unit

Variable Manufacturing Overhead

3,000

0.3 ft/unit

IV. Actual Variable Manufacturing Costs (2014)

You will use this table to complete Milestone Two.

Actual Costs

Actual Input

Direct Materials: Cedar

248,160

3.2 ft/unit

Direct Materials: Plastic

37,741

1.1 ft/unit

Direct Manufacturing: Labor ($)

332,760

11.80/hr

Variable Manufacturing Overhead

2,585

0.2 ft/unit

ANSWERS FOR MILESTONE 1& 2

Fixed Manufacturing Overhead

Total Manufacturing Costs

Gross Margin

Development of Flexible Budget - Calculations

Budgeted Cost per Feet/Hour

Static Budget Cost

Static Budget Units

Budgeted Unit

Actual Volume

Flexible Budget

Amounts

Amount

Revenues

$ 21.00

47,000

$987,000

Variable Costs

DM-Plastic

4.50

47,000

211,500

DM-Cedar

0.75

47,000

35,250

Direct Manuf. Labor

6.00

47,000

282,000

Variable Manuf. Overhead

0.06

47,000

2,820

Total Variable Manufacturing Costs

11.31

531,570

Fixed Manufacturing Overhead

95,000

Total Manufacturing Costs

626,570

Gross Margin

$360,430

Milestone One, Part II

Use Table I on the MDE Manufacturing Budget to complete your calculations.

Totals

Totals

Budget

Actual

Sales Price per Unit

$ 21.00

$ 21.00

Variable Costs

Materials - Cedar

225,000

248,160

Materials - Plastic

37,500

37,741

Factory Worker Labor

300,000

332,760

Materials - Indirect

3,000

2,585

Shipping ($2.25/ea)

112,500

105,750

Sales Commissions ($2/unit sold)

100,000

94,000

778,000

820,996

Variable Cost per Unit

778,000 / 50,000

$15.56

820,996/47,000

$ 17.47

Contribution Margin

$ 5.44

$3.63

Using Budgeted Amounts

Breakeven Point -

181,000

33272 units

49,697 units

$5.44

Using Actual Amounts

180,500

52,450 units

+ 10,000 profit

190,500

Using actual amounts

+ 10,000 profit

New Contribution Margin

$4.05

Current Variable Costs

$17.47

New Sales Price

$21.52

Development of Price and Efficiency Variances - Calculations

Actual Ounces per Unit

Actual Units

Actual Ounces Used

Actual Cost

Actual Cost per Unit

DM-Plastic

3

47,000

150,400

248,160

$ 1.65

DM-Cedar

1

47,000

51,700

37,741

$ 0.73

Actual Labor Cost per Hour

Actual Labor Costs

Actual Labor Hours

Actual Units

Actual Labor Hours per Unit

Direct Manuf. Labor

$ 11.80

$ 332,760

28,200

47,000

0.60

Direct Material Plastic ($22,560) U price variance

($14,100) U efficiency variance

Direct Material Cedar $1034 F Price variance.

($3525) U efficiency variance

Direct Manufacturing Labor $5640 F Price Variance

($56,400) U Efficiency Variance

Variable Manufacturing Overhead ($235 ) U Spending Variance

$470 F Efficiency Variance

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