I need help with questions 5 - 7, I have already completed the calculations, having difficulties writing the report.

Written Report or Essay Prepare a report that outlines the benefits, costs and limitations of activity-based costing. (To set your report in the appropriate business context, you should refer to the information given in the case details above, the schedules provided below and the outcomes of the following requirements.) To support your report you should undertake the following (and use the outcomes in your report): 1. Assign the costs to the activity centers using the resource driver consumption patterns shown in Schedules 1 and 2. 2. Calculate the cost of each activity performed in the Mincing Centre, using the information provided above and in Schedule 3 3. A list of the activities performed and their annual costs is provided in Schedule 4 (some costs will need to be calculated as indicated above). In addition the schedule provides an activity driver for each activity and the annual quantity of each activity driver. Calculate the cost per unit of activity driver for the activities listed. (work to four decimal places.) 4. Based on the information calculated above and in Schedules 5 and 6, prepare a bill of activities and determine the cost per unit for Mettwurst and Csabai. 5. Would the difference in costs for the two products be reflected in the conventional costing system? Do you think that the existing costing system understates or overstates the cost of Mettwurst and Csabai? Explain your answers in details with reference to your calculations. 6. Your report should also describe the changes in cost structure that are likely to have occurred at Processador Company over the last 20 years, and speculate on their causes. 7. Explain how activity-based costing could overcome the deficiencies inherent in the existing costing system. And what factors should the management accountant consider when deciding whether to use an Activity-based system that includes both manufacturing overhead and non-manufacturing costs?Schedule 1 Cost Categories and Resource Drivers Cost category Cost Resource driver Wages $3,000,000 Number of employees Building costs $500,000 Floor space preciation 51,000,000 Machine hours Consumables $50,000 Orders placed by centre Energy $400,000 Kilowatt hours used Other $50,000 Number of employees Total 55,000,000 The current conventional approach to allocation of overheads is to use a plantwide rate. The current plantwide rate in use can be approximated by using the estimated annual number of units produced as the level of activity. Schedule 2 Resource drivers consumed by activity centres Cost categories (resource drivers) Wages | Building |Depreciation | Consumables Energy Other costs Activity centres (employees) Tmachine [orders) kilowatt (employees) hours) hours) Product Development 3 200 10 3 Sales and dispatch 10 500 15 10 Inspecting 2 500 2 Mincing 25 1,000 4,000 150 20,000 25 Mixing 25 17000 5,000 200,000 25 Smoking and Packing 20 1,000 900 150 30,000 20 Administration 10 500 100 50 10 Corporate management 5 300 25 5 Total quantity of resource drivers across all activity 100 5,000 10,000 500 250,000 100 centresSchedule 3 Activities and resource drivers used in the Mincing Activity Centre Activity Percentage of Percentage of labour time floor space Load mincer 20% 5% Operate mincer 50% 80% Unload mincer 20% 5% Move to mixing room 10% 10% Total 100% 100% The only activity that makes significant use of machinery (and therefore depreciation and energy) is "Operate mincers'. Various supplies (consumables) used in the Mincing Activity Centre are almost all used by the mincing operator who orders these supplies as and when needed.Schedule 4 List of activities Activity Activity cost |Activity driver Annual quantity of activity driver Corporate management $185,000 |Assigned directly to products Process receivables $148,000 No. of invoices 5,000 invoices Process payables $148,000 No. of purchase orders 2.500 purchase orders Program production $74,000 No. of production schedules 1,000 production schedules Process sales order $223,900 No. of sales orders 4,000 sales order Dispatch sales order $132,600 No. of dispatches 2,500 Ispatches Product Development $112,500 |Assigned directly to products Inspect meat $76,600 No. of batches 1,000 batches Disposal of substandard meat $17,200 No. of batches 1,000 batches Move to mincing room $17,200 No. of batches 1,000 batches Load mincer ?7 No. of batches 1,000 batches Operate mincer No. of kilograms 200,000 kilograms Unload mince ?? No. of batches 1,000 batches Move to mixing room ?? No. of batches 1,000 batches Set up scales $43,625 No. of batches .000 batches Weigh ingredients $82 250 No. of batches 1,000 batches Load mixers $164,500 No. of batches batches Operate mixers $1,266,250 No. of kilograms 200,000 kilograms Clean mixers $87 250 No. of batches 10OO batches Move mixture to packing $48,625 No. of kilograms 200,000 kilograms Pack Into skins $161,250 No. of trays 16,000 trays Setup smokehouse $67,500 No. of smallgoods 800,000 smallgoods Move to smokehouse $36 250 | No. of trays 16,000 trays Smoke smallgoods $438,000 No. of batches 1,000 batches Unload smokehouse $36,250 No. of batches 1,000 batches Inspect smallgoods $82 500 | No.of trays 16,000 trays Move to truck $41,250 No. of smallgoods 800,000 smallgoods "??" indicates that these figures must be calculated. "smallgoods" refers to units of processed meat products.Schedule 5 Mettwurst Activities consumed Annual quantity of activity driver Corporate management $4,625 Assigned directly to products Process receivables 500 invoices Process payables 200 purchase orders Program production 100 production schedules Process sales order 400 Sales Dispatch sales order 500 dispatches Product Development 5600 Assigned directly to products Inspect meat 100 batches Disposal of substandard meat 100 batches Move to mincing room 100 batches Load mincer 100 batches Operate mincer 30,000 kilograms Unload mincer 100 batches Move to mixing room 100 batches Set up scales 100 batches Weigh 100 batches Load mixers 100 batches Operate mixers 30,000 kilograms Clean mixers 100 batches Move mc 30,000 kilograms Pack Into skins 2,000 trays Setup smokehouse 100,000 smallgoods Move to smokehouse 2,000 trays Smoke smallgoods 100 batches Unload smokehouse 100 batches Move to truck 100,000 smallgoods Direct Materials $240,000 Assigned directly to products Batch size 1,000 Annual Volume 100,000Schedule 6 Csabal Activities consumed Annual quantity of activity driver Corporate management 5463 Assigned directly to products Process receivables 150 invoices Process payables 100 purchase orders Program production 50 production schedules Process sales order 100 sales orders Dispatch sales order 150 dispatches Product Development $2,400 Assigned directly to products Inspect meat 50 batches Disposal of substandard meat 50 batches Move to mincing room 50 batches Load mincer 50 batches Operate mincer 4,000 kilograms Unload mincer 50 `batches Move to mixing room 50 batches Set up scales 50 batches Weigh ingredients 50 batches Load mixers 50 batches Operate mixers 4,000 kilograms Clean mixers 50 batches Move mixture to packing 4,000 kilograms Pack into skins 400 trays Setup smokehouse 10,000 smallgoods Move to smokehouse 400 trays Smoke smallgoods 50 batches Unload smokehouse 50 batches Inspect smallgoods 400 trays Move to truck 10,000 smallgoods Direct Materials 540,000 Assigned directly to products Batch size 200 Annual Volume 10,000