Scenario: Mr. Beridon received your requests for information and returned data which you have compiled in an Microsoft Excel spreadsheet (see document template). He also said, "We grow sod and trees at Jeemp Farms. We sell the sod mainly to home builders in the area, although we sell to some individuals who are purchasing square footages to re-sod their yard. Many home builders will purchase to sod an entire subdivision. They then may come back to us to purchase trees for the yards. It really is a package deal. For builders like that, we are a one-stop-shop. In most cases, however, we sell the trees to orchards and some individuals. The purchaser is responsible for all shipping costs related to their product." "Our production process is different for each product. For sod, we plant the seed, irrigate, cut, and roll the sod and then transport it. For the trees, we plant the root stock, graft the tree, water until a particular maturity and then dig it up and sell it. We inspect the plants as needed to make sure we are producing a quality product that is disease-free." "We have delayed purchasing some machinery that reduces time for the planting of the trees because it is a large up-front cost and we don't want to have a huge outlay of cash if our profits keep going down." "The grass does not require as much irrigation as the trees, as it is at a lower elevation than the tree acres and is closer to the creek; it gets a lot of the run off." "Historically, we have always been able to sell everything we produce. Hopefully, that will continue since Houston is expanding rapidly."

See below Excel Details and Answer the following: Describe any factors that could skew your results. In other words, explain if there is one method of costing that could make a product look more favorable than it really is.

$ $ $ Trees 12.99 $ 0.99 $ 2.00 $ % of overhead costs by product St. Augustine Sod in sq feet Texas Pecan Trees year old trees Planting Irrigating 20% 20% 80% 80% Product Suppc Harvesting 7% 40% 93% 60% Selling Price Per Unit Direct Materials Per Unit Direct Labor Per Unit Direct Labor Hours Per Unit Estimated Annual Production and Sales Property Taxes Inspections 40% 10% 60% 90% Sod 0.38 0.01 0.09 0.009 1,556,851 units 0.2 8,908 Overhead costs by product St. Augustine Sod in sq feet Texas Pecan Trees year old trees Planting $9,400.00 $37,600.00 Irrigating $3,800.00 $15,200.00 Product Suppc Harvesting $1,333.22 $8,626.80 $17,712.78 $12,940.20 Property Taxes Inspections TOTALS $2,701.60 $456.40 $26,318.02 $4,052.40 $4,107.60 $91,612.98 $117,931.00 Estimated Overhead (last year's numbers) Planting Irrigation Product Support Harvesting Inspections Property Taxes TOTAL 47,000 19,000 19,046 21,567 4,564 6,754 117,931 Overhead Planting Irrigation Product Support Harvesting Inspections Property Taxes TOTAL 47,000 19,000 19,046 21,567 4,564 6,754 117,931 Estimated Total Direct Labor Hours Predetermined Overhead Rate 15793.259 DO NOT ROUND 7.467173178 DO NOT ROUND Traditional Costing Sales Direct Materials Direct Labor Manufacturing Overhead Product Margin $ 115,714.92 $ $ 8,818.92 $ $ 17,816.00 $ $ 13,303.52 $ $ 75,776.48 $ 591,603.38 15,568.51 $ 140,116.59 $ 104,627.48 331,290.80 ABC Costing: Sales Direct Materials Direct Labor Manufacturing Overhead Product Margin Trees Sod $115,714.92 $591,603.38 $8,818.92 $15,568.51 $118,247.90 $17,816.00 $140,116.59 $182,003.12 $91,612.98 26,318.02 ($2,532.98) $409,600.26 39,938.44 260,312.58 per unit ($0.28) $0.26 per unit $ 8.51 $ 0.21 $ $ $ Trees 12.99 $ 0.99 $ 2.00 $ % of overhead costs by product St. Augustine Sod in sq feet Texas Pecan Trees year old trees Planting Irrigating 20% 20% 80% 80% Product Suppc Harvesting 7% 40% 93% 60% Selling Price Per Unit Direct Materials Per Unit Direct Labor Per Unit Direct Labor Hours Per Unit Estimated Annual Production and Sales Property Taxes Inspections 40% 10% 60% 90% Sod 0.38 0.01 0.09 0.009 1,556,851 units 0.2 8,908 Overhead costs by product St. Augustine Sod in sq feet Texas Pecan Trees year old trees Planting $9,400.00 $37,600.00 Irrigating $3,800.00 $15,200.00 Product Suppc Harvesting $1,333.22 $8,626.80 $17,712.78 $12,940.20 Property Taxes Inspections TOTALS $2,701.60 $456.40 $26,318.02 $4,052.40 $4,107.60 $91,612.98 $117,931.00 Estimated Overhead (last year's numbers) Planting Irrigation Product Support Harvesting Inspections Property Taxes TOTAL 47,000 19,000 19,046 21,567 4,564 6,754 117,931 Overhead Planting Irrigation Product Support Harvesting Inspections Property Taxes TOTAL 47,000 19,000 19,046 21,567 4,564 6,754 117,931 Estimated Total Direct Labor Hours Predetermined Overhead Rate 15793.259 DO NOT ROUND 7.467173178 DO NOT ROUND Traditional Costing Sales Direct Materials Direct Labor Manufacturing Overhead Product Margin $ 115,714.92 $ $ 8,818.92 $ $ 17,816.00 $ $ 13,303.52 $ $ 75,776.48 $ 591,603.38 15,568.51 $ 140,116.59 $ 104,627.48 331,290.80 ABC Costing: Sales Direct Materials Direct Labor Manufacturing Overhead Product Margin Trees Sod $115,714.92 $591,603.38 $8,818.92 $15,568.51 $118,247.90 $17,816.00 $140,116.59 $182,003.12 $91,612.98 26,318.02 ($2,532.98) $409,600.26 39,938.44 260,312.58 per unit ($0.28) $0.26 per unit $ 8.51 $ 0.21