can somebody please help me with a b. and c

Howard Rockness was wortied His company, Rockness Bottling, showed declining profits over the past several years despite an increase in revenues With profits declining and revenues increasing, Rockness knew there must be a problem with costs Pockness sent an e-mail to his executive team under the subject heading. "How do we get Rockness Botting back on track?" Meeting in Pockness's spacious office, the team began brainstorming solutions to the declining profits problem Some members of the team wanted to add products (These were marketing people) Some wanted to fire the least efficient workers (These were finance people) Some wanted to empower the workers (These people worked in the human resources department And some people wanted to install a new computer system. It should be obvious who these people were) Rockness listened patiently When all participants had made their cases, Pockness said. "We made money when we were smaller simpler company. We have grown added new product lines and added new products to old product lines Now we we going down What's wrong with this picture?" Rockness continued, 'Here, look at this report this is last month's report on the cola Botting line What do you see here" He handed copies of the following report to the people assembled in his office Monthly Report on cols bottling Line Diet Cherry Sales 319,950 1150.600 Less: Hatertois Direct labor Fringe benefits on direct labor Indirect costs (20% of direct labor) Gross margin Return on sales (see note []) Volume unit price Unit cost Total 175,000 Regule 300.000 4. 1. 22 50,210 20.00 .200 25,000 10,000 4.000 26.00 110.000 13. 50,000 1 1.5 $ 1.50 20,000 6.000 3.100 20.600 5.6. 1. 40,000 1.5 11.30 Grape 31.650 550 200 0 520 1 1. 1.000 $ 1.65 1.3 300 12,070 14.5 9.000 $ 1.55 11.12 120,170 23.5 100.000 1.500 1.12 Return on sales before considering selling, general and administrative expenses Rockness asked, "Do you see any problems here? Should we drop any of these producte Should we reproe any of these product The room was slent for a moment, and then everybody started talking at once Nobody could see any problems based on the data in the report, but they all made suggestions to Rockness ranging from add another cola product to cut couscoss the board to we need a new computer system so that managers can get this information more quickly" A noto patient Pockness stopped the discussion abruptly and adjourned the meeting He then turned to the quietest person in the room-his son, Rocky and said, "lam suspicious or the cost das Rocky Here we are assigning indirect costs to these products ung 260 percent rate really wonder whether that is accurate for all products I want you to dig into the indirect cost dota figure out what drives those costs and see whether you can give me more accurate cod numere for these producto Rocky first learned from production that the process required lour active selling up production managing production ruris, and (a) managing productsThe fourth activity did not require abort was amply the option machinery Nethet assigning indirect costs to these products using a 260 percent rate I really wonder whether that rate is accurate for all products I want you to dig into the indirect cost data, figure out what drives those costs and see whether you can give me more accurate cost numbers for these products" Rocky first learned from production that the process required four activities (1) setting up production runs (2) managing production runs, and (3) managing products. The fourth activity did not require labor, it was simply the operation of machinery Next, he went to the accounting records to get a breakdown of indirect costs. Here is what he found Indirect labor Fringe benefits on Indirect labor Information technology Machinery depreciation Machinery maintenance Energy Total $ 20,000 5.000 10,000 8.000 4,000 2.000 $ 52,000 Then, he began a series of interviews with department heads to see how to assign these costs to cost pools He found that 40 percent of indirect labor was for scheduling or for handling production runs, including purchasing, preparing the production run, releasing materials for the production run, and performing a first time inspection of the run. Another 50 percent of indirect labor was used to set up machinery to produce a particular product . The remaining 16 percent of indirect labor was spent maintaining records for each of the four products monitoring the supply of taw materials required for each product, and improving the production processes for each product This 10 percent of indirect labor was assigned to the cost driver number of products Interviews with people in the information technology department indicated that $10,000 was allocated to the cola bottling line. Eighty percent of this $10,000 information technology cost was for schedulin production runs Twenty percent of the cost was for record keeping for each of the four products Fiinge benefits were 40 percent of labor cott The rest of the overhead was used to supply machine capacity of 10,000 hours of productive time Rocky then found the following cost driver volumes from interviews with production personnel Setups: 500 labor hours for setups . Production runs 110 production runs Number of products 4 products Machine-hour capacity 20.000 hours Diet cols used 200 celup hours, 40 production tons and 5,000 machine hours to produce 50.000 und Regular coled 60 setup hours, 30 production runs, and 4000 machinehouisto produce 40.000 unit Chery Coluced 240 stup hours 30 production runs and 900 machine-hours to produce 9.000 urtape col used to setup hours to production rund 100 machine hours to produce 1000 units Rocky learned that the production people use getting the tought for the Cherry and Grape colas, to these products requued more time per setup than the Neguler Required: Recompute the unit costs for each of the colours Chand Required: a. Recompute the unit costs for each of the cota products Diet, Regular Cherty, and Grape b. What is the cost of unused capacity? c. Now assume that Rockness is considering producing a fifth product Vanilla cola Because Vanilla cola is in high demand in Rockness Bottling's market, assume that it would use 10,000 hours of machine time to make 100.000 units (Recall that the machine capacity in this case is 20.000 hours, while Diet, Regular, Cherry, and Grape consume only 10,000 hours, Vanilla cola's per unit costs would be identical to those of Diet cola except for the machine usage costs What would be the cost of Vanillo cola? Calculate on a per-unit basis, and then in total Complete this question by entering your answers in the tabs below. Required A Required B Required Recompute the unit costs for each of the cola products Diet, Regular Cherry, and Grape. (Round cont dnvarrates to decimal places and other intermediate calculations to nearest whole dollar value Round cost per unit answers to 2 decimal places.) Unit Costs on Cola Bottling Line Diet Regular Cherry Grape Total Materials Direct labor Fringe benefits on direct labor Setup costs Production run costs Product costs Machine costs Total costs Volume Cost per unit Required