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Prompt In this assignment, multiple analyses will be conducted in order to obtain a company's financial information specific to company costs. MDE manufactures outdoor garden
Prompt In 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, the company'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 will then 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 sales price 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 1 and 2 of the Student Workbook
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