I am having a really hard time understanding this whole project. I really need help trying to grasp this assignment.

The final project for this course is the creation of a quantitative analysis with a memo to management.Classifying a company?s costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A costvolume-profit(CVP) analysis will be completed in order to determine the breakeven point. Relevant costs will be used to prepare a flexible budget. Additionally,an appropriate costing system should be selected and the choice should be substantiated with reasonable rationale. Finally, a memo should be prepared formanagement that summarizes the results of the quantitative analysis and makes recommendations for an optimal costing system to be ethically used by keydecision makers.The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality finalsubmissions. These milestones will be submitted in Modules Two, Four, and Five. The quantitative analysis with a memo to management will be submitted inModule Seven.In this assignment, you will demonstrate your mastery of the following course outcomes:? Utilize cost behavior and cost analysis to assist decision makers in planning and adding value to the business? Prepare a flexible budget for supporting informed managerial decision making? Interpret variances for determining the optimal costing system to fit an organization?s internal accounting needs? Interpret the role of ethics in cost accounting for determining its impact on decision makingPromptIn this assignment, multiple analyses will be conducted in order to obtain a company?s financial information specific to company costs.MDE manufactures outdoor garden items such as lawn ornaments and bird feeders. MDE uses a standard costing system to set standards for direct materials,labor, and overhead costs. MDE reviews and revises standards as necessary. Recently, budget variances for bird feeders have caused some concern. You, thecompany?s cost accountant, have been asked to examine the numbers for the product, explain the variances, and suggest ways to improve performance.Specifically, the following critical elements must be addressed:You will begin by using the MDE Manufacturing Budget (Table I) to analyze costs, contribution margin, and breakeven point for the bird feeder division. You willthen analyze the actual costs and complete a cost-volume-profit (CVP) analysis to determine how many bird feeders must be sold at the current cost and salesprice level to earn a 10% profit and how much the sales price would have to increase to earn a 10% profit at the same cost and sales volume level. Use Tabs 1and 2 of the Student Workbook.I. Costsa) Classify all product and period costs appropriately.b) Compute a cost-volume-profit analysis. What are the implications of this analysis?c) Compute contribution margin per unit and contribution margin ratio.d) Determine the breakeven quantity and the breakeven revenue accurately.e) Determine if the company is breaking even. What are cost-volume-profit analysis implications on short-term planning?Your next step is to use the MDE Manufacturing Budget (Tables I, II, III, IV) to compare the budget and actual costs. Determine where variances occurred andexplain why. Use Tabs 3 and 4 of the Student Workbook to present your budgets/variances and Tabs 5 and 6 for all budget/variance calculations.II. Prepare and Performa) What are your fixed costs? Segregate them in the budget model.b) Determine how variable costs change as activity measures change. How can this information be applied?c) Create the budget model, ensuring fixed costs are hard coded into the model (variable costs are stated as a percentage of the relevant activitymeasures or as a cost per unit of activity measure).d) Add actual activity measures to the model. Make sure all information is added accurately.e) Add the flexible budget calculations to the budget model. Make sure all information is accurate.f) Compare the flexible budget to the actual expenses. What does this inform? Be sure to discuss the following variances:i. Static budget variance, including sales volume and flexible budget variancesii. Price and efficiency variances for direct materials and direct laboriii. Spending and efficiency variances for variable manufacturing overheadg) Determine the aspects of the budgeting process that are in need of improvement. Justify your response.h) Interpret what budget variances represent. Should all variances be investigated?You have also been asked to give management a recommendation on whether the company should switch from process costing to activity-based costing (ABC).This is an exploratory discussion, but management would like to know more about the difference between the two costing systems and if a different costingsystem might work better for the company.III. Main Costing Systems ? Activity-Based Costing vs. Process Costinga) 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?After all of your calculations and research, you are now ready to prepare your report.IV. Prepare a Memo to Managementa) Summarize your quantitative analysis based on your findings (include answers to all questions in Sections I, II, and III).b) Report the parts of the budgeting process that are in need of improvement. Provide suggestions to improve those parts.c) Report overall improvement recommendations to management. Consider the ethical implications when communicating sensitive information.MilestonesMilestone One: Draft of Costs (Section I)In Module Two, you will submit a draft of the costs section of the final project. Use the MDE Manufacturing Budget (Table I) to analyze costs, contributionmargin, and breakeven point for the bird feeder division of the company. In Tab 1 of your Student Workbook, classify costs as either product or period costs.Briefly explain the difference between the types of costs. Then, analyze the actual costs and, using Tab 2 of your Student Workbook, complete a cost-volumeprofitanalysis to determine how many bird feeders must be sold at the current cost and sales price level to earn a 10% profit and how much the sales price wouldhave to increase to earn a 10% profit at the same cost and sales volume level. Submit the Student Workbook with Tabs 1 and 2 completed with your costcalculations and a 1-2 page Word document that explains the implications of your findings and addresses all of the critical elements in Section I. This milestonewill be graded with the Milestone One Rubric.Milestone Two: Draft of Prepare and Perform (Section II)In Module Four, you will submit a draft of the prepare and perform section of the final project. Analyze the budget and actual costs using the MDEManufacturing Budget (Tables I, II, III, IV). Determine where variances occurred and why. Submit the Student Workbook with Tabs 3 and 4 completed with yourbudgets/variances calculations and a 1-2page Word document that discusses the implications of your findings on the company?s financial considerations. Explainwhich aspects of MDE?s budgeting process are in need of improvement and justify your response using your calculations. Address all critical elements in SectionII. Use Tabs 5 and 6 of the Student Workbook for your budget and variance calculations. This milestone will be graded with the Milestone Two Rubric.Milestone Three: Draft of Main Costing Systems (Section III)In Module Five, you will submit a draft of your main costing system recommendations. You have been asked to give management a recommendation on whetherthe bird feeder division should switch from process costing to activity-based costing. This is just an exploratory discussion, but management would like to knowmore about the differences between the two costing systems and if a different costing system might work better for the division. Submit a Word document thataddresses the critical elements of Section III. This milestone will be graded with the Milestone Three Rubric.Final Submission: Quantitative Analysis With a Memo to ManagementIn Module Seven, submit your quantitative analysis with a memo to management. It should incorporate all milestones and include ection IV of the criticalelements listed in the Final Project Document

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 ($) Actual ($) 1,050,000 991,700 Expenses Materials - Cedar Materials - Plastic Factory Worker Labor Materials - Indirect Factory Depreciation Factory Utilities Factory Maintenance and Repairs Shipping ($2.25/each) Sales Commissions ($2.00/unit sold) Office Rent Advertising Liability insurance Office Depreciation Office Salaries 225,000 37,500 300,000 3,000 78,000 12,000 5,000 112,500 100,000 12,000 20,000 5,000 1,000 48,000 248,160 37,741 332,760 2,585 78,000 12,000 4,500 105,750 94,000 12,000 20,000 5,000 1,000 48,000 Total Expenses 959,000 1,001,496 Sales II. Contribution Margin: Static Budget and Actual Results (2014) You will use this table to complete Milestone Two. Actual Results Units Sold Revenues ($) Manufacturing Costs ($) Variable Fixed Gross Margin Static Budget Amount 47,000 991,700 50,000 1,050,000 621,246 94,500 275,954 565,500 95,000 389,500 III. Standard Variable Manufacturing Costs (2014) You will use this table to complete Milestone Two. Static Budget Costs Standard Input 225,000 37,500 300,000 3,000 3.0 ft/unit 1.0 ft/unit 0.5 hrs/unit 0.3 ft/unit Direct Materials: Cedar Direct Materials: Plastic Direct Manufacturing Labor Variable Manufacturing Overhead IV. Actual Variable Manufacturing Costs (2014) You will use this table to complete Milestone Two. Actual Costs Direct Materials: Cedar Direct Materials: Plastic Direct Manufacturing: Labor ($) Variable Manufacturing Overhead Actual Input 248,160 37,741 332,760 2,585 3.2 ft/unit 1.1 ft/unit 11.80/hr 0.2 ft/unit Milestone One, Part I Product Costs Period Costs Milestone One, Part II Use Table I on the MDE Manufacturing Budget to complete your calculations. Totals Budget Sales Price per Unit Variable Costs Materials - Cedar Materials - Plastic Factory Worker Labor Materials - Indirect Shipping ($2.25/ea) Sales Commissions ($2/unit sold) Variable Cost per Unit Contribution Margin Fixed Costs Factory Depreciation Factory Utilities Factory Maintenance and Repairs Office Rent Advertising Liability Insurance Office Depreciation Office Salaries Total Fixed Costs Using Budgeted Amounts Breakeven Point - Using Actual Amounts + 10,000 profit Using actual amounts + 10,000 profit 3,000 Totals Actual 2,585 Breakeven Point - Units at Current Sales Price New Contribution Margin Current Variable Costs New Sales Price Milestone Two, Part I Use Tables I through IV on the MDE Manufacturing Budget to complete your calculations. Refer to Exhibit 7-2 on page 253 of the text Budget Model Units Sold Revenues Variable Costs DM-Plastic DM-Cedar Direct Manuf. Labor Variable Manuf. Overhead Total Variable Costs Fixed Manuf. Overhead Total Costs Gross Margin Actual 47,000 $991,700 Flexible Budget Variance $4,700 Favorable/ Unfavorable Favorable From Flexible Budget Calculations Sheet Flexible Budget 47,000 $987,000 Sales Volume Variance ($63,000) Favorable/ Unfavorable Unfavorable Static Budget 50,000 $1,050,000 Milestone Two, Part II Use the variance supporting calculation tab to complete your calculations. Price Variance Direct Materials - Cedar Direct Materials - Plastic Direct Labor Spending Variance Variable Manufacturing Overhead Efficiency Variance Efficiency Variance Revenues Variable Costs DM-Plastic DM-Cedar Direct Manuf. Labor Variable Manuf. Overhead Total Variable Manufacturing Costs Fixed Manufacturing Overhead Total Manufacturing Costs Gross Margin Budgeted Unit Amounts $ 21.00 4.50 Actual Volume 47,000 47,000 Flexible Budget Amount $987,000 211,500 Use Tables III and IV on the MDE Manufacturing Budget to complete your calculations. Development of Price and Efficiency Variances - Calculatio Actual Ounces per Unit DM-Plastic DM-Cedar Actual Labor Cost per Hour Direct Manuf. Labor Actual Costs Incurred (Actual Input Qty. Actual Price) Actual Feet per Unit Actual Units Actual Input Qty. Budgeted Pric Actual Price per Ounce Actual Units Direct Material Plastic $ $ Price Variance $ Price Variance Direct Material Cedar $ Actual Units - Actual Hours per Unit Actual Cost per Hour Actual Units Direct Manufacturing Labor $ $ Actual Costs Price Variance Actual Input Qty. Budgeted Pric Actual Costs Actual Units Variable manufacturing overhead $ $ Spending Variance e and Efficiency Variances - Calculations Actual Ounces Used Actual Units Actual Labor Costs Actual Labor Hours Actual Cost Actual Units $ $ Actual Hours per Unit $ $ - $ - Efficiency Variance Budgeted Cost per Hour Actual Units - Budgeted Hours Budgeted Cost per per Unit Hour $ $ Budgeted Cost per Ounce Efficiency Variance $ Budgeted Feet per Unit Actual Units $ Actual Labor Hours per Unit Flexible Budget (Budgeted Input Qty. Allowed for Actual Output Budgeted Price) Actual Input Qty. Budgeted Price Actual Feet per Budgeted Cost Unit per Ounce Actual Cost per Unit - Efficiency Variance Actual Input Qty. Budgeted Price Flexible Budget (Budgeted Input Qty. Allowed for Actual Output Budgeted Price) Actual Feet per Budgeted Cost Unit per Foot $ Budgeted Feet per Unit Actual Units - $ $ Efficiency Variance - Budgeted Cost per Foot