Managerial accounting please help

Pixel Studio, Inc., is a small company that creates computer-generated animations for films and television Much of the company's work consists of short commercials television, but the company also does realistic computer animations for effects movies. The young founders of the company have become increasingly concerned with the economics of the understand since many sprung recently local area. activities the company's structure, an activity-based costing system been esigned. Three major are carried out in the company: concept, animation production, and contract company bids The animation concept activity is carried out at the contract proposal stage when the on projects. This is an intensive activity that involves individuals from parts of the company all in creating and prototype to be shown to the prospective client. Once a project is of accepted by the client, the animation goes into production and contract administration begins. Almost all the work involved in animation production is done by the technical staff, the administrative staff is largely responsible for contract administ The activity cost pools and their measures are Activity Cost Pool Activity Measure Activity Rate Animation concept Number of proposals 6,220 per proposal Animation production Minutes of completed animation $8,960 per minute Contract administration Number of contracts 6,910 per contract These activity rates include al of the company's costs, except for the costs of idle capacity and organization-sustaining costs. There are no direct labor or direct materials Preliminary analysis using these activity rates has indicated that the local commercial se of the be This segment is highly Producers of local commercials may as companies like bid, which results in an unusually low ratio accepted contracts three or four to bids. the animation sequences tend to be much shorter for local commercials work. Since animation work is billed at fairly rates according to the running time of the completed this that the revenues from these short projects tend to be average. Data concerning activity in the local commercial market appear Activity Measure Local Commercial Number of proposals 30 Minutes of animation Number of contracts