I need help with this assignment. I have attached the required documents to be completed along with the instructions. Use the project guidelines and case study as a guide to complete the spreadsheet and other required documents for ALL of the module requirements. It has a few steps involved and i need the help. Thanks for your help, it is appreciated.

ACC 550 Final Project Guidelines and Rubric Overview The final project for this course is the creation of a quantitative analysis that includes an Excel spreadsheet, accompanied by a memo to management. Accountants provide management with the logistics of the business that are crucial for daily operations and a company's overall success. In any business, it is of the utmost importance to be aware of all finances and internal processes. Cost accountants focus solely on the internal processes of a business and are tasked with eliminating any unnecessary costs in order to maximize profits. In this assessment, you have been tasked with conducting a quantitative analysis that looks into the internal processes of a company. Based on your analysis, you will formulate recommendations to management that aim to improve internal processes and increase profits for the company. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three, Five, and Seven. Your final submission will occur in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes: Apply cost-volume-profit (CVP) analysis based on cost classification for planning and control of internal accounting processes within an organization Assess cost and revenue allocation methods for providing relevant information to decision makers Select the optimal inventory management method for meeting the needs of an organization Evaluate cost accounting performance and planning tools for their impact on business operations Prompt Conduct a quantitative analysis of a company's internal processes using the Hampshire Company Case Study document. Your analysis will consist of completing the Hampshire Company Spreadsheet and will be accompanied by a memo to management. Specifically, the following critical elements must be addressed: I. Cost-Volume-Profit Analysis Cost-volume-profit (CVP) analysis is a useful tool for informing short-term economic planning within an organization. In this section, a CVP analysis will be conducted and used to inform business decisions and recommendations. A. Perform a CVP analysis based on cost classifications. B. Explain how a CVP analysis can assist management with short-term economic planning. Support your response with examples from your CVP analysis. C. Accurately compute the break-even quantity and break-even revenue. D. Determine whether the company is breaking even. What are the CVP analysis implications on planning? II. Inventory Management Inventory management serves to minimize the cost to maintain inventory and maximize returns. In this section, the company's financial data will be reviewed in order to determine the optimal inventory management system. A. Determine an optimal cost allocation method based on the relevant costs. B. Describe how this method should be used by decision makers to fulfill their responsibilities. Support your response with examples. C. What are the pros and cons of implementing the just-in-time (JIT) inventory system? Do the pros outweigh the cons for this company? D. Explain how the just-in-time (JIT) inventory system can benefit this organization. Defend your response. E. Identify the inventory management method you recommend, and explain why this method will benefit the company. III. Benchmarking In this section, benchmarking will be reviewed. Benchmarking can be implemented in various ways depending on a company's circumstances. Your company has decided to implement benchmarking and would like you to research and recommend the most effective approach. A. What is the advantage to benchmarking in terms of improving companies' performance? Support your response. B. Identify possible approaches to benchmarking. Describe each. C. Which benchmarking method should management adopt and why? IV. Alternative Costing Method There are various costing methods available for companies to implement. As a company grows, it may become beneficial to consider an alternate costing method. A. Identify an alternative costing method that could benefit this company, and describe the main characteristics of that method. B. What should a company look for when trying to determine whether they should adopt such a system? C. Should the company adopt this alternative costing method? Defend your response. V. Memo to Management Your memo to management should serve as a summary of your quantitative analysis, reviewing the key points and recommendations that you feel management should be aware of. A. Describe the overall findings of your analysis, including key elements that management should be aware of. B. Make a recommendation to management based on your cost accounting analysis that will enhance business planning. C. Recommend a performance tool to management based on your cost accounting analysis that will improve business operations. You may use the following resources to help you prepare your memo to management: Purdue OWL: Memos contains information related to formatting a memo, and Purdue OWL: Sample Memo presents a sample of a memo that you can use as a guide when you format the memo for the final project. If you would like a refresher course on using various features of Excel, sign in to Atomic Learning and type \"Excel\" in the search box. This will provide you with options to select the specific level of training that you need (intro, intermediate, or advanced) and the specific version of Excel that you have (e.g., 2011 or 2013). The trainings are broken down into small, meaningful chunks. Therefore, you should be able to find specific topics at each level that will meet your needs. Milestones Milestone One: Draft of Cost-Volume-Profit Analysis In Module Three, you will submit a draft of the cost-volume-profit analysis (Section I of the final project), including all critical elements as listed above. Refer to the Hampshire Company Case Study document, as this will provide you with details on how to complete this milestone. All calculations for your quantitative analysis should be completed in the Hampshire Company Spreadsheet. You will provide a rough draft of your one- to two-page qualitative analysis in a Word document. The Word document must be in APA format. Once you have completed your analysis, submit your Word and Excel documents. This milestone will be graded with the Milestone One Rubric. Milestone Two: Draft of Inventory Management and Benchmarking In Module Five, you will submit a draft of the inventory management and benchmarking sections of the final project (Sections II and III, respectively), including all critical elements as listed above. Refer to the Hampshire Company Case Study document, as this will provide you with details on how to complete this milestone. All calculations for your quantitative analysis should be completed in the Hampshire Company Spreadsheet. You will provide a rough draft of your three- to fourpage qualitative analysis in a Word document. The Word document must be in APA format. Once you have completed your analysis, submit your Word and Excel documents. This milestone will be graded with the Milestone Two Rubric. Milestone Three: Draft of Alternative Costing Method In Module Seven, you will submit a draft of the alternative costing method section of the final project (Section IV), including all critical elements as listed above. Refer to the Hampshire Company Case Study document, as this will provide you with details on how to complete this milestone. All calculations for your quantitative analysis should be completed in the Hampshire Company Spreadsheet. You will provide a rough draft of your two- to three-page qualitative analysis in a Word document. The Word document must be in APA format. Once you have completed your analysis, submit your Word and Excel documents. This milestone will be graded with the Milestone Three Rubric. Final Project Submission: Quantitative Analysis and Memo to Management In Module Nine, you will submit your quantitative analysis and memo to management. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded using the Final Project Rubric. Deliverables Milestone One Two Three Deliverable Draft of Cost-Volume-Profit Analysis Draft of Inventory Management and Benchmarking Draft of Alternative Costing Method Final Project Submission: Quantitative Analysis and Memo to Management Module Due Three Five Grading Graded separately; Milestone One Rubric Graded separately; Milestone Two Rubric Seven Nine Graded separately; Milestone Three Rubric Graded separately; Final Project Rubric Final Project Rubric Guidelines for Submission: The financial portions of your quantitative analysis should be submitted using the Hampshire Company Spreadsheet. The written portions of your qualitative analysis should be submitted as a six- to nine-page Microsoft Word document. Your memo to management should be submitted as a two- to three-page Microsoft Word document. Both Word documents should use double spacing, one-inch margins, and 12-point Times New Roman font. Sources should be cited according to APA style. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Cost-Volume-Profit Analysis: Analysis Cost-Volume-Profit Analysis: Economic Planning Cost-Volume-Profit Analysis: Break-Even Exemplary Proficient Performs a cost-volume-profit analysis based on cost classifications (100%) Meets \"Proficient\" criteria and Explains how a CVP analysis can demonstrates a nuanced assist management with shortunderstanding of the relationship term economic planning and between CVP and short-term supports response with examples planning (100%) (90%) Accurately computes the breakeven quantity and break-even revenue (100%) Needs Improvement Performs a cost-volume-profit analysis, but it is not based on cost classifications (70%) Explains how a CVP analysis can assist management with shortterm economic planning but does not support response with examples, or explanation is cursory or inaccurate (70%) Computes the break-even quantity and break-even revenue, but there are issues with accuracy (70%) Not Evident Does not perform a cost-volumeprofit analysis (0%) Value 5.4 Does not explain how a CVP analysis can assist management with short-term economic planning (0%) 5.4 Does not compute the breakeven quantity and break-even revenue (0%) 5.4 Cost-Volume-Profit Analysis: Implications Meets \"Proficient\" criteria and Determines whether the uses industry-specific language to company is breaking even and establish expertise (100%) identifies cost-volume-profit analysis implications for planning (90%) Inventory Management: Meets \"Proficient\" criteria and Relevant Costs demonstrates a nuanced understanding of the relationship between optimal cost allocation and relevant costs (100%) Inventory Management: Meets \"Proficient\" criteria, and Method description is exceptionally clear and contextualized (100%) Determines an optimal cost allocation method based on the relevant costs (90%) Recommends how the method should be used by decision makers to fulfill their responsibilities and supports response with examples (90%) Determines whether the company is breaking even but does not identify cost-volumeprofit analysis implications on planning, or determination or identification contain issues with accuracy (70%) Determines an optimal cost allocation method, but determination is not based on the relevant costs (70%) Recommends how the method should be used by decision makers to fulfill their responsibilities but does not support response with examples (70%) Inventory Management: Meets \"Proficient\" criteria, and Identifies the pros and cons of Identifies the pros and cons of Pros and Cons description is well supported with implementing JIT and describes implementing JIT but does not examples (100%) whether the pros outweigh the describe whether the pros cons for this company (90%) outweigh the cons for this company (70%) Inventory Management: Meets \"Proficient\" criteria, and Explains how the JIT inventory Explains how the JIT inventory Inventory System explanation is exceptionally clear system can benefit the system can benefit the and contextualized (100%) organization and defends organization but does not defend response (90%) response (70%) Inventory Management: Meets \"Proficient\" criteria and Identifies the inventory Identifies the inventory Inventory uses specific examples to support management method management method description (100%) recommended and explains why recommended but does not this method will benefit the explain why this method will company (90%) benefit the company (70%) Benchmarking: Meets \"Proficient\" criteria, and Identifies an advantage of Identifies an advantage of Advantage support includes specific benchmarking and supports benchmarking but does not examples (100%) response (90%) support response (70%) Benchmarking: Meets \"Proficient\" criteria and Identifies different approaches to Identifies different approaches to Approaches shows a keen insight into the benchmarking and describes each benchmarking but does not variety of benchmarking (90%) describe each (70%) approaches (100%) Does not determine whether the company is breaking even (0%) 5.4 Does not determine an optimal cost allocation method (0%) 5.4 Does not recommend how the method should be used by decision makers (0%) 5.4 Does not identify the pros and cons of implementing JIT (0%) 5.4 Does not explain how the JIT inventory system can benefit the organization (0%) 5.4 Does not identify the inventory management method that is recommended (0%) 5.4 Does not identify an advantage of benchmarking (0%) 5.4 Does not identify different approaches to benchmarking (0%) 5.4 Benchmarking: Benchmarking Method Meets \"Proficient\" criteria, and determination is well supported and plausible (100%) Alternative Costing Method: Main Characteristics Meets \"Proficient\" criteria and displays a keen insight into the variety of alternative costing systems (100%) Alternative Costing Method: Adopt Meets \"Proficient\" criteria and demonstrates a nuanced understanding of the relationship of the needs of a company and an alternative costing system (100%) Meets \"Proficient\" criteria, and determination is well supported and plausible (100%) Alternative Costing Method: Method Memo to Management: Findings Meets \"Proficient\" criteria, and description is exceptionally clear and contextualized (100%) Memo to Management: Business Planning Meets \"Proficient\" criteria, and recommendation is well supported and plausible (100%) Memo to Management: Business Operations Meets \"Proficient\" criteria, and recommendation uses industryspecific language to establish expertise (100%) Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format (100%) Determines which benchmarking method management should adopt and justifies response (90%) Identifies alternative costing systems and describes the main characteristics of each (90%) Determines what the company should look for when deciding to adopt an alternative costing system and supports response with examples (90%) Determines whether the company should adopt the alternative costing method and defends response (90%) Describes the overall findings of analysis and identifies key elements that management should be aware of (90%) Makes recommendation to enhance business planning based on cost accounting analysis (90%) Recommends a performance tool to improve business operations based on cost accounting analysis (90%) Submission has no major errors related to citations, grammar, spelling, syntax, or organization (90%) Determines which benchmarking method management should adopt but does not justify response (70%) Identifies alternative costing systems but does not describe the main characteristics of each, or identification or description contain inaccuracies (70%) Determines what the company should look for when deciding to adopt an alternative costing system but does not support response with examples (70%) Determines whether the company should adopt the alternative costing method but does not defend response (70%) Describes the overall findings of analysis but does not identify key elements that management should be aware of (70%) Makes recommendation to enhance business planning, but recommendation is not based on cost accounting analysis (70%) Recommends a performance tool to improve business operations, but recommendation is not based on cost accounting analysis (70%) Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas (70%) Does not determine which benchmarking method management should adopt (0%) 5.4 Does not identify alternative costing systems (0%) 5.4 Does not determine what the company should look for when deciding to adopt an alternative costing system (0%) 5.4 Does not determine whether the company should adopt the alternative costing method (0%) 5.4 Does not describe the overall findings of analysis (0%) 5.4 Does not make recommendation to enhance planning (0%) 5.4 Does not recommend a performance tool to improve business operations (0%) 5.4 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas (0%) 2.8 Earned Total 100% ACC 550 Hampshire Company Case Study Section I: Cost-Volume-Profit Analysis The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each umbrella are as follows: Direct Materials: $3.00 Direct Labor: $1.50 Variable Manufacturing Overhead: $0.40 Variable Selling Expenses: $1.10 Using the information above, perform a cost-volume-profit (CVP) analysis by completing the steps below. All CVP calculations should be completed in the Hampshire Company Spreadsheet. Note: The CVP analysis satisfies Part A of Section I. 1. Compute net income before tax. 2. Compute the unit contribution margin in dollars and the contribution margin ratio for one umbrella. 3. Calculate the break-even point in units and dollars of revenue. Note: This is a required part of the CVP analysis and satisfies Part C of Section I. 4. Calculate the margin of safety: a. In units b. In sales dollars c. As a percentage 5. Calculate the degree of operating leverage. 6. Assume that sales will increase by 20% in 2015. Calculate the percentage of before-tax income for this increase. Provide calculations to prove that your percentage increase is correct based on the operating leverage calculated in step 5. 7. Compute the number of umbrellas that Hampshire is required to sell if it plans to earn $120,000 in income before taxes by using the target income formula. Proof your calculation. 8. A company that specializes in tours in England has offered to purchase 5,000 umbrellas at $11 each from Hampshire. The variable selling costs of these additional units will be $1.30 as opposed to $1.10 per unit. Also, this production activity will incur another $15,000 of fixed administrative costs. Should Hampshire agree to sell these additional 5,000 umbrellas to the touring business? Provide calculations to support your decision. Additionally, complete Parts B and D of Section I as outlined in the Final Project Guidelines and Rubric document. Section II: Inventory Management The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units. Beginning Inventory: 0 Umbrellas Production: 80,000 Umbrellas Sales: 60,000 Umbrellas Ending Inventory: 20,000 Umbrellas Using the information provided above and the costs and sales information provided in Section I, complete the following in the Hampshire Company Spreadsheet in order to assist you in responding to all components of Section II: Prepare a variable costing income statement. Prepare an absorption costing income statement. Additionally, complete Parts A through E of Section II as outlined in the Final Project Guidelines and Rubric document. Section III: Benchmarking The management of the Hampshire Company would like to implement benchmarking. Standard costs have been established and are presented below. You will want to complete a variance analysis to include efficiency and price variances for materials (cloth and handle assemblies) and labor based on the following data: Units Produced = 80,000 Units Sold = 60,000 Direct Materials Purchased and Used Actual square yards of cloth purchased and used: 128,000 Actual price incurred per yard: $1.25 Actual handles purchased and used: 80,808 Actual price per handle/rib/stretcher assembly: $0.99 Direct Manufacturing Labor Used Actual direct labor hours used: 15,748 Actual price per hour: $7.62 Direct labor costs: $120,000 Standard Rates Standard labor hours per unit: 0.20 Standard labor price per hour: $7.50 Square yards material per unit: 1.50 Standard price per yard: $1.15 Handle/rib/stretcher assembly per unit: 1 Standard price per handle assembly: $1.05 Companies can use variance analysis and benchmarking to measure performance within their own company and against competitors. This can be done by setting standards/budgets and comparing a completed variance analysis to results from prior periods or comparing them to competitors' results. Using the information provided above, complete the following calculations (steps 1 and 2) in the Hampshire Company Spreadsheet. This will assist you in responding to all components of Section III. 1. Calculate price variances for material and labor and denote whether they are favorable or unfavorable. 2. Calculate efficiency variances for material and labor and denote whether they are favorable or unfavorable. In order to measure performance and make use of the variance analysis completed, management understands the need to compare results with their competitors. Following the steps outlined below, you will research benchmarking and propose the most effective approach for your company. Respond to Parts A through C of Section III as outlined in the Final Project Guidelines and Rubric document. Section IV: Alternative Costing Method Hampshire has always produced stick umbrellas. However, it is considering expanding its production to include collapsible umbrellas. This consideration has been spurred by Tours Today, a touring company that is interested in providing its customers with collapsible umbrellas imprinted with its logo. The management at Hampshire is currently working out a deal with the touring company to produce 3,000 collapsible umbrellas and believes it can sell those umbrellas for $14.00 each. Here are the costs that can be directly traced to this special order: Direct Materials: $9,300 Direct Labor Hours: 600 Hourly Rate of Direct labor: $8.00 In the traditional costing approach, overhead is applied at the rate of $24.60 per labor hour. This expansion in production will add additional overhead costs. The total overhead costs (assuming production of the stick and collapsible umbrellas) to include the cost pools and cost drivers are provided in Table 2. An alternative costing method that might benefit Hampshire is the implementation of activity-based costing (ABC). Hampshire would like to implement an ABC approach to analyze the production of this special order of collapsible umbrellas. The controller has assembled the following information: Stick Units Sold 60,000 Selling Price $12.50 Direct Material Cost per Unit $3 Direct Labor Cost per Hour $7.50 Variable Manufacturing Overhead $0.40 Variable Selling Costs $1.10 Labor Hours per Unit 0.2 Sales Orders 120 Purchase Orders 50 Production Runs 45 Material Moves 86 Machine Setups 130 Machine Hours 525 Inspections 200 Shipments 60 Table 1: Direct Cost Information and Activities Activity Order Processing Purchasing Material Handing Machine Setup Production Assembly Inspecting Shipping Collapsible 3,000 $14.00 $3.10 $8.00 $0.40 $1.10 0.2 1 3 6 10 6 32 10 3 Activity Cost Activity Cost Driver $35,000 Number of Sales Orders $36,000 Number of Purchase Orders $28,000 Material Moves $14,000 Machine Setups $99,000 Production Runs $80,000 Machine Hours $11,000 Number of Inspections $7,500 Number of Shipments Table 2: Activity Cost Pools and Cost Drivers Another alternative to traditional costing and ABC is time-driven activity-based costing (TDABC). You will need to determine which of these three methods would be the best approach for the Hampshire Company. The following article may assist you in your analysis: Time-Driven Activity-Based Costing. Additionally, you may want to use the Shapiro Library to conduct further research on the three methods. You will need to defend your position when answering the prompts for the written portion of this section. Using the information provided above, complete the following in the Hampshire Company Spreadsheet in order to assist you in responding to all components of Section IV: 1. Calculate the allocation rates for each cost driver using ABC. 2. Use the traditional costing approach to calculate the total cost and the unit cost of the stick and collapsible umbrellas. 3. Use ABC to compute the total costs and the unit cost for the stick and collapsible umbrellas. 4. Compute the difference between the product cost per stick and collapsible umbrellas using the unit cost that you computed with the traditional approach and the one that you computed using ABC. Based on your calculations from steps 1-4, respond to Parts A through C in Section IV as outlined in the Final Project Guidelines and Rubric document. Section V: Memo to Management The management of the Hampshire Company is very interested in measuring performance. They would like you to recommend a strategy to increase business performance. They are not sure whether they should focus on product differentiation or cost leadership. Research additional performance tools to include the balanced scorecard. During your research, consider what performance measurements you would use based on the four perspectives. Provide examples. In your recommendation, you will want to include the outcome of your previous quantitative analysis and research performed related to cost-volume-profit (CVP), variable and absorption costing, just-in-time (JIT), standard costs, variances, and benchmarking. You will want to review key points and make recommendations based on your current research and prior analysis completed and research performed. Your two- to three-page memo to management must be submitted as a Word document and must include your responses to Parts A through C of Section V as outlined in the Final Project Guidelines and Rubric document. Requirement 1 Units Sales Variable Costs Fixed Costs Net Income Price X$ X$ Totals $ $ $ $ Requirement 2 Contribution Margin per Unit in Dollars = Selling Price - Variable Costs Selling Price Variable Costs Contribution Margin per Unit Contribution Margin Ratio = Contribution Margin/Selling Price Contribution Margin Selling Price Contribution Margin Ratio Requirement 3 Break-Even Point = Fixed Costs / Contribution Margin Fixed Costs Contribution Margin Break-Even Point in Units (Rounded) Break-Even Point in Units X Selling Price per Unit = Break-Even Point Sales Break-Even Point in Units Selling Price per Unit Break-Even Point in Sales (Rounded) Requirement 4A Margin of Safety in Units = Current Unit Sales - Break-Even Point in Unit Sales Current Unit Sales Break-Even Point in Sales Margin of Safety in Units Requirement 4B Margin of Safety in Dollars = Current Sales in Dollars - Break-Even Point Sales in Dollars Current Sales in Dollars Break-Even Point in Dollars Margin of Safety in Dollars Requirement 4C Margin of Safety as a Percentage = Margin of Sales in Units / Current Unit Sales Margin of Safety in Units Current Unit Sales Margin of Safety Percentage Requirement 5 Degree of Operating Leverage = Contribution Margin / Operating Income Contribution Margin Operating Income Operating Leverage Requirement 6 Units Sales Variable Costs Fixed Costs Net Income X$ X$ Operating Leverage Prior Income Increase Total $ Per Unit $ $ $ $ Times % Increase $ $ $ Totals Increase would be XX% From Part 1 Prior Income X XX% Above Requirement 7 Targeted Income = (Fixed Costs + Target Income) / Contribution Margin Fixed Costs + Target Income Fixed Costs Target Income Divided by Contribution Margin $ $ # of Units (Rounded) Total Proof $ $ X # of Units Above X $ Per Unit Revenue XX,XXX X $XX.XX Variable Costs XX,XXX X $X.XX Contribution Margin Fixed Costs Net Income $ $ $ $ $ Requirement 8 Sales Mix Current Expected Sales Units Revenue = Sales X Price Variable Costs X Units Contribution Margin Fixed Costs Operating Income Specialty X $ $ $ $ Total X $ $ $ $ $ $ $ $ $ Prior Net Income From Requirement 1 $ Additional Operating Income $ Decision With Explanation (Operating Income Above Less Prior Income) Requirement 1 Hampshire Company Variable Costing Income Statement Units Sales Variable Cost of Goods Sold: Beginning Inventory Direct Materials Direct Labor Manufacturing Overhead Total Variable Costs $ X$ $ $ $ $ $ $ X $ X $ X $ Cost of Good Available for Sale Deduct Ending Inventory Variable Costs of Goods Sold Variable Selling Costs Contribution Margin Fixed Costs: Fixed Manufacturing Costs Fixed Administrative Costs Operating Income X$ $ $ X $ $ $ $ $ $ $ $ Requirement 2 Hampshire Company Absorption Costing Income Statement Units Sales Variable Cost of Goods Sold: Beginning Inventory Direct Materials Direct Labor Manufacturing Overhead Total Variable Costs Allocated Fixed Manufacturing Costs Cost of Good Available for Sale Deduct Ending Inventory Costs of Goods Sold Gross Margin Fixed Costs: Variable Selling Costs Fixed Administrative Costs Operating Income $ X$ X $ X $ X $ X $ X$ $ $ $ $ $ $ $ $ $ $ $ X $ $ $ $ Requirement 1 Price Variances: (Actual Price - Standard Price) X Actual Quantity Actual Standard Actual Quantity Variance Favorable or Unfavorable X$ Cloth $ $ Handle Assembly $ $ X$ Labor Price Variance $ $ X$ Requirement 2 Efficiency Variances: (Actual Quantity of Input Used - Standard Quantity of Input Allowed for Actual Output) X Budgeted Price of Input Actual Cloth (1.5 Yards per Unit) Handle Assembly (1 per Unit) Labor (.20 per Unit) Standard Standard Price X X$ Variance Favorable or Unfavorable $ X X$ $ X X$ $ Cost Information From Instructions Stick Units Sold Selling Price Direct Material Cost Per Unit Direct Labor Cost Per Hour Variable MO Variable Selling Costs Labor Hours Per Unit Sales Orders Purchase Orders Production Runs Material Moves Machine Setups Machine Hours Inspections Shipments Collapsible 60,000 $12.50 $3.00 $7.50 $0.40 $1.10 0.2 120 50 45 86 130 525 200 60 Activity Information from Instructions Activity Order Processing Purchasing Material Handing Machine Setup Production Assembly Inspecting Shipping Activity Cost $35,000 $36,000 $28,000 $14,000 $99,000 $80,000 $11,000 $7,500 3,000 $14.00 $3.10 $8.00 $0.40 $1.10 0.2 1 3 6 10 6 32 10 3 Activity Cost Driver Number of Sales Orders Number of Purchase Orders Material Moves Machine Setups Production Runs Machine Hours Number of Inspections Number of Shipments Requirement 1 Activity Order Processing Purchasing Material Handing Machine Setup Production Assembly Inspecting Shipping Quantity of Cost Allocation Overhead Allocation Base Rate X$ X$ X$ X$ X$ X$ X$ X$ Total Costs $ $ $ $ $ $ $ $ Requirement 2 Traditional Costing Stick Umbrella Revenues Direct Materials Direct Labor Variable Overhead Variable Selling Costs Allocated Fixed Overhead Total Costs Operating Income Operating Income % Per Unit Operating Income Collapsible Umbrella $ $ $ $ $ $ $ $ Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ % $ % $ Requirement 3 Activity-Based Costing Stick Umbrella Revenues Direct Materials Direct Labor Variable Overhead Variable Selling Costs Order Processing Costs Purchasing Costs Material Handing Costs Machine Setup Costs Production Costs Assembly Costs Inspecting Costs Shipping Costs Total Costs Operating Income Operating Income % Per Unit Operating Income Requirement 4 Costs per Unit Traditional ABC Difference Requirement 5 Collapsible Umbrella $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ % $ % $ Stick Umbrella $ $ $ Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Collapsible Umbrella $ $ $