Hi i need help on this Managerial Accounting case study

CHIC'HO company produces and sells about twenty products childeare products such as : the new product Rollspouce, a top range baby earriage combined with a stroller, and Tompouce, an older produet from the same product line defined as a basie version of Rollspouee. Few months after Rollspouce market introduction, the CFO wanted to make surc that the product can generate enough margin for a double purpose to fitance the development of future prodacts and to generate profit. Finally, she would like to evaluate the relative profitability of Rollspoese and Tompouse, two products of the same line, but of a different generation. She therefore asks ber management controlier to analyre the costs and profit of these two products over the last period. Regarding the organization of the production, CHIC'HO developed a global Jjust-in-time process combined with a quality and a partnership process with suppliers. As a result, the company does not bear and manage any siocks (components and finished products). Fach product goes sucecsively through the '"mamufictunng' workshop, then through the 'assembly' (and pockaging) workshop. - Maierial costs : 30 Elunit for Rollsponce : 15 E elunit for fomponec. - Direet labour cost: 13 Ehour in 'manufacturing' workshop and 12 ehour in 'assembly' workshop. The 'manuficturing' workshop is automated with machinery prepanng components and parts. During the month, 600 direet labour hours bave been allocated for Rollspouce and 300 direet labour hours for Tompouce. A total of 3,060 direet labour hours are used in this workshop. The 'assembly' (and packaging) workshop cost driver is also labour hours. During the month, 1,200 direet labour hours have been allocated for Rollspouce and 2,400 direct labour hours for Tompouce. A total of 25,500 direct labour hours are used in this workshop. Since now, management accounting used the simple full-eost accounting method. Indireet costs are allocated to products cost using direet labour hours for both products in both workshops. lndirect costs for the month amount to 200,000 During the month, besides the manuficture of others products, the company produced 600 Rollspouce and 1,800 Tompouce; sold for a unit price of 108 for Rollspouce and 65 for Tompouce. Required: PART I/ From the items above, calculate the foll cost and the profit during the month for each one of the two products;. Rollspouce and Fompouce. PART 1/ From the items above, calculate the full cost and the profit during the month for each one of the two produets: Rollspotice and Tompouce. Give your opinion on the simple method to allocate the indireet costs PART 2 Affer the first analysis, the financial controller would like to propose to CHIC'HO's CEO a more accurate alternative method to allocate indirect costs. He splits the company in business centers as follows: PART 2% After the first analysis, the financial controller would tike to prepose to CHICHO 's CEO a more aceurate alternative method to alloeate indirect costs. He splits the contpany in busimess centers as follows: AGiM Administrative and Gineral Management (Executive Management, LT, Management control. Supply, Distribution) - NB : the managemeat controller, with the support of the CEO, has decided not to ioclude the conts of the devign-industrialination ceater or the value of the sevices that the decige iaduadrialleation center receives from the AGM center in the full cua of predacts. The AGM center provides services to ofben eenters amounting to 10% for maiateninge; 3en f for manufacture, 35\%, for assembly, 25 F for deign and indusirialization. The maintenance provides services to the main openating workshope of the design-industrialiration center or the value of the services that the deugn-industrialigatien center receives from the AGM center in the fall cest of preducis. The AGM center provides services to others eenters atmounting to 10% for mainienance, 30% for manufacture, 35% for assembly, 25% for design and industrialization. The maintenance provides services to the main operating workshops. Gencral accounting expenses has been reordered as follows : to asetmbby warkikop (conal 1,020h ) maching-hows in ths narkithop, the renimeing hawas are far odker prodictsi. Indarect costs of the 'maintenance' cost cevter are allocated to both main epcrating coxt centern ('manufucturing' worksbop and 'assembly' workshop) as indicated in point (l). The "manafacturing' workshop and the firished goods 'assembly' workshop use the followiag cost drivers: Manufacturing worksbop: cost driver - machine hour Finished goods Assembly workshops cost driver - labour hour a) In few wordh, give your opiaion on the new organization ia business units and the cost drivers choices. b) Using the tradtional cost allocation 2 steps method, calculate the full costs and the profits fot each one of the two products. c) Compare the two method of full cost calculation. Explain and comment on the differences. CHIC'HO company produces and sells about twenty products childeare products such as : the new product Rollspouce, a top range baby earriage combined with a stroller, and Tompouce, an older produet from the same product line defined as a basie version of Rollspouee. Few months after Rollspouce market introduction, the CFO wanted to make surc that the product can generate enough margin for a double purpose to fitance the development of future prodacts and to generate profit. Finally, she would like to evaluate the relative profitability of Rollspoese and Tompouse, two products of the same line, but of a different generation. She therefore asks ber management controlier to analyre the costs and profit of these two products over the last period. Regarding the organization of the production, CHIC'HO developed a global Jjust-in-time process combined with a quality and a partnership process with suppliers. As a result, the company does not bear and manage any siocks (components and finished products). Fach product goes sucecsively through the '"mamufictunng' workshop, then through the 'assembly' (and pockaging) workshop. - Maierial costs : 30 Elunit for Rollsponce : 15 E elunit for fomponec. - Direet labour cost: 13 Ehour in 'manufacturing' workshop and 12 ehour in 'assembly' workshop. The 'manuficturing' workshop is automated with machinery prepanng components and parts. During the month, 600 direet labour hours bave been allocated for Rollspouce and 300 direet labour hours for Tompouce. A total of 3,060 direet labour hours are used in this workshop. The 'assembly' (and packaging) workshop cost driver is also labour hours. During the month, 1,200 direet labour hours have been allocated for Rollspouce and 2,400 direct labour hours for Tompouce. A total of 25,500 direct labour hours are used in this workshop. Since now, management accounting used the simple full-eost accounting method. Indireet costs are allocated to products cost using direet labour hours for both products in both workshops. lndirect costs for the month amount to 200,000 During the month, besides the manuficture of others products, the company produced 600 Rollspouce and 1,800 Tompouce; sold for a unit price of 108 for Rollspouce and 65 for Tompouce. Required: PART I/ From the items above, calculate the foll cost and the profit during the month for each one of the two products;. Rollspouce and Fompouce. PART 1/ From the items above, calculate the full cost and the profit during the month for each one of the two produets: Rollspotice and Tompouce. Give your opinion on the simple method to allocate the indireet costs PART 2 Affer the first analysis, the financial controller would like to propose to CHIC'HO's CEO a more accurate alternative method to allocate indirect costs. He splits the company in business centers as follows: PART 2% After the first analysis, the financial controller would tike to prepose to CHICHO 's CEO a more aceurate alternative method to alloeate indirect costs. He splits the contpany in busimess centers as follows: AGiM Administrative and Gineral Management (Executive Management, LT, Management control. Supply, Distribution) - NB : the managemeat controller, with the support of the CEO, has decided not to ioclude the conts of the devign-industrialination ceater or the value of the sevices that the decige iaduadrialleation center receives from the AGM center in the full cua of predacts. The AGM center provides services to ofben eenters amounting to 10% for maiateninge; 3en f for manufacture, 35\%, for assembly, 25 F for deign and indusirialization. The maintenance provides services to the main openating workshope of the design-industrialiration center or the value of the services that the deugn-industrialigatien center receives from the AGM center in the fall cest of preducis. The AGM center provides services to others eenters atmounting to 10% for mainienance, 30% for manufacture, 35% for assembly, 25% for design and industrialization. The maintenance provides services to the main operating workshops. Gencral accounting expenses has been reordered as follows : to asetmbby warkikop (conal 1,020h ) maching-hows in ths narkithop, the renimeing hawas are far odker prodictsi. Indarect costs of the 'maintenance' cost cevter are allocated to both main epcrating coxt centern ('manufucturing' worksbop and 'assembly' workshop) as indicated in point (l). The "manafacturing' workshop and the firished goods 'assembly' workshop use the followiag cost drivers: Manufacturing worksbop: cost driver - machine hour Finished goods Assembly workshops cost driver - labour hour a) In few wordh, give your opiaion on the new organization ia business units and the cost drivers choices. b) Using the tradtional cost allocation 2 steps method, calculate the full costs and the profits fot each one of the two products. c) Compare the two method of full cost calculation. Explain and comment on the differences