Burnheart Furniture Company, based in Hickory, NC, manufactures three types of desks and sales these desks to various office furniture retail chains. Product A is the companys base model made out of wood, glue, and screws with no customization. Product B is made out of the same materials but is highly customized based on customer specifications. Products A and B are primarily manufactured by hand. Product C is made out of the same materials as the other two products, but additionally requires a particular height adjustment device made of metal. Burnheart machines and assembles the device in-house using robotics specifically designed for this device. The cost of manufacturing the height adjustment device for Product C is as follows:

Direct labor $4.00

Direct materials 45.00

Variable overhead ($12 per direct labor hour) 3.00

Fixed overhead ($16 per direct labor hour). 4.00

Total cost $56.00

Recently, an outside supplier has offered to sell the device for Product C to Burnheart for $54.

1. a) For each product, create a list of the types of costs and departments likely to be associated with the manufacture of the Product?

2. b) RecommendimprovementsthatBurnheartshouldmaketoitscurrentcostingsystemfor Product C.

3. c) Which costing system (job, process, or activity-based) would be best for each separate product. Explain the rationale for your choice.