Budgeting and controlling assignment, please find attached

Budgeting and controlling Please answer all 4 questions. Question 1 MIDTERM EXAM SuperLock manufactures and sells three types of high security door knobs, Brass, Chrome, and White. Differentiating the three products on the basis of price is important to SuperLock as Brass, Chrome and White knobs appeal to different consumer markets. The company uses a traditional cost- ing system that allocates overhead costs (i.e. setup and inspection costs) based on direct labour hours. The following data apply: Total activity levels and setup and inspection costs for the year are estimated as follows: Required . a) Calculate the per unit profit level for each knob type that would be reported by the traditional costing system: . b) Calculate the per unit profit level for each knob type that would be reported by an activity based costing system. . c) Do both systems support corporate strategy? Discuss in the light of your results in (a) and (b) above. Question 2: Provide a brief answer to all of the following questions: . 2.1. What does the term cost management mean? Who in the typical firm or organization is re- sponsible for cost management? . 2.2. What is the difference between cost allocation and cost assignment? . 2.3. Identify what are likely to be variable costs for an airline such as Southwest Airlines. Also, what are the fixed costs likely to be? . 2.4. Identify what are likely to be variable costs for an airline such as Southwest Airlines. Also, what are the fixed costs likely to be? . 2.5. What is the best way to choose an appropriate cost driver when applying factory overhead? . 2.6. Define relevant range and explain its use. Provide an example. Question 3 \"All companies should always implement Activity-Based Costing.\" Required: Critically discuss this statement (about 700 words). Question 4 Jan Holliday Dance Studios is a chain of 45 wholly owned dance studios that offer private lessons in ballroom dancing. The studios are located in various cities throughout the southern and southeastern states. Holliday offers a set of 12 private lessons; students may pay for the lessons one at a time, but each student is required to enroll for at least a 12-lesson plan. The 20-, 40-, and 100-lesson plans offer savings. Each dance instructor is paid a small salary plus a commission based on the number of dance lessons provided. Required: Holliday's owner is interested in a strategic analysis of the business. The owner wants to understand why overall profitability has declined slightly in the most recent year while other studios in the area seem to be doing well. What is the proper cost object to begin this analysis? Explain your choice. For each of the cost elements, determine the cost classification from the following list for the cost object you chose in requirement 1. (In some cases, two or more classifications may apply.) Cost Elements . 4.1 Each dancing instructor's salary . 4.2 Manager's salary . 4.3 Music tapes used in instruction . 4.4 Utilities for the studio . 4.5 Part-time studio receptionist . 4.6 Planning and development materials sent from the home office . 4.7 Free lessons given by each studio as a promotion . 4.8 Regional TV and radio advertisements placed several times a year Cost Classifications . 4.9 Direct . 4.10 Indirect . 4.11 Variable . 4.12 Fixed