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Exhibit 1: Green Stream Company- Trolleys Department Today's cost structure-year end. Direct costs Classic Model Electric Model Nber of units sold (trolleys) 836 164 Selling Price per unit 122 311 Initial and final inventory 0 0 Materials costs per unit 18,3 49.6 Direct Labour hours per unit 0,5 hour 1,5 hour Direct Labour costs per hour 24.4 24,4 Indirect costs Indirect costs are today allocated to each product according to very simple keys. Cost centers: Supplying Assembling Distribution TOTAL year end indirect costs 89 764,20 11 716,6 1 of material purchase Indirect costs Allocation key to the product (cost driver) 62 748 1 hour of direct labour 15 299,6 1 of sales Exhibit 2: New Indirect costs allocation COST CENTER Supplying = 11 716,60 Activity Commercial Negotiation Order Management Components management Manual Assembly Automatic Assembly Quality control Sales Administration Delivery Activity Cost 5850 2929,15 2 937.45 12 549,6 31 374 18 824,4 9 179,3 6120,3 Assembling = 62 748 Distribution = 15 299,6 Mr Wood proposed the following cost drivers list: 100 Hence. Mr. Wood wants to increase his electric trolleys production. He plans to re-allocate a part of the today assembling area of classic trolleys" for making more electric trolleys and to launch a big advertising campaign You are the new controller of "Green Stream Company and Mr Wood relies on your analysis prior to make his final decision. He asked you to carry out two studies Questions 1-First Analysis: Current product costing Basing your analysis on the current cost structure of the Trolley Department of Green Stream Company (exhibit 1) 1-1. Please calculate the manufacturing cost the full product costing and the margin of each trolley model per unit. Classic Model Electric Model Manufacturing cost per unit Full costing Margin Margin in % Calculation explanations : . ........ 1-2. How much is the total income of each range (Classic and Electric) and of the Trolley Department? Classic Model Electric Model Total trolley Department Exhibit 1: Green Stream Company- Trolleys Department Today's cost structure-year end. Direct costs Classic Model Electric Model Nber of units sold (trolleys) 836 164 Selling Price per unit 122 311 Initial and final inventory 0 0 Materials costs per unit 18,3 49.6 Direct Labour hours per unit 0,5 hour 1,5 hour Direct Labour costs per hour 24.4 24,4 Indirect costs Indirect costs are today allocated to each product according to very simple keys. Cost centers: Supplying Assembling Distribution TOTAL year end indirect costs 89 764,20 11 716,6 1 of material purchase Indirect costs Allocation key to the product (cost driver) 62 748 1 hour of direct labour 15 299,6 1 of sales Exhibit 2: New Indirect costs allocation COST CENTER Supplying = 11 716,60 Activity Commercial Negotiation Order Management Components management Manual Assembly Automatic Assembly Quality control Sales Administration Delivery Activity Cost 5850 2929,15 2 937.45 12 549,6 31 374 18 824,4 9 179,3 6120,3 Assembling = 62 748 Distribution = 15 299,6 Mr Wood proposed the following cost drivers list: 100 Hence. Mr. Wood wants to increase his electric trolleys production. He plans to re-allocate a part of the today assembling area of classic trolleys" for making more electric trolleys and to launch a big advertising campaign You are the new controller of "Green Stream Company and Mr Wood relies on your analysis prior to make his final decision. He asked you to carry out two studies Questions 1-First Analysis: Current product costing Basing your analysis on the current cost structure of the Trolley Department of Green Stream Company (exhibit 1) 1-1. Please calculate the manufacturing cost the full product costing and the margin of each trolley model per unit. Classic Model Electric Model Manufacturing cost per unit Full costing Margin Margin in % Calculation explanations : . ........ 1-2. How much is the total income of each range (Classic and Electric) and of the Trolley Department? Classic Model Electric Model Total trolley Department