The questions are to be answered based on the information of data below an dplease help to answer the question in detail.

The questions to concentrate on are as follows:

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.

This is scenario :

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

The data that is supposed to be used to answer the questions mentioned on top is right below. Please have a look at the calculations.

Cost Information From Instructions
	Stick	Collapsible
Units Sold	60,000	3,000
Selling Price	$12.50	$14.00
Direct Material Cost Per Unit	$3.00	$3.10
Direct Labor Cost Per Hour	$7.50	$8.00
Variable MO	$0.40	$0.40
Variable Selling Costs	$1.10	$1.10
Labor Hours Per Unit	0.2	0.2
Sales Orders	120	1
Purchase Orders	50	3
Production Runs	45	6
Material Moves	86	10
Machine Setups	130	6
Machine Hours	525	32
Inspections	200	10
Shipments	60	3
Activity Information from Instructions
Activity	Activity Cost	Activity Cost Driver
Order Processing	$35,000	Number of Sales Orders
Purchasing	$36,000	Number of Purchase Orders
Material Handing	$28,000	Material Moves
Machine Setup	$14,000	Machine Setups
Production	$99,000	Production Runs
Assembly	$80,000	Machine Hours
Inspecting	$11,000	Number of Inspections
Shipping	$7,500	Number of Shipments
Requirement 1
Activity	Total Costs	Quantity of Cost Allocation Base	Overhead Allocation Rate
Order Processing	$35,000	121	$289
Purchasing	$36,000	53	$679
Material Handing	$28,000	96	$292
Machine Setup	$14,000	136	$103
Production	$99,000	51	$1,941
Assembly	$80,000	557	$144
Inspecting	$11,000	210	$52
Shipping	$7,500	63	$119
Requirement 2
Traditional Costing
	Stick Umbrella	Collapsible Umbrella	Total
Revenues	$750,000	$42,000	$792,000
Direct Materials	$180,000	$9,300	$189,300
Direct Labor	$90,000	$4,800	$94,800
Variable Overhead	$24,000	$1,200	$25,200
Variable Selling Costs	$66,000	$3,300	$69,300
Allocated Fixed Overhead	$295,714	$14,786	$310,500
Total Costs	$655,714	$3,386	$689,100
Operating Income	$94,286	$8,614	$102,900
Operating Income %	13%	21%	$13
Per Unit Operating Income	$1.57	$2.87
Requirement 3
Activity-Based Costing
	Stick Umbrella	Collapsible Umbrella	Total
Revenues	$750,000	$42,000	$792,000
Direct Materials	$180,000	$9,300	$189,300
Direct Labor	$90,000	$4,800	$94,800
Variable Overhead	$24,000	$1,200	$25,200
Variable Selling Costs	$66,000	$3,300	$69,300
Order Processing Costs	$34,711	$289	$35,000
Purchasing Costs	$33,963	$2,038	$36,000
Material Handing Costs	$25,084	$2,917	$28,000
Machine Setup Costs	$13,382	$618	$14,000
Production Costs	$87,353	$11,647	$99,000
Assembly Costs	$75,405	$4,595	$80,000
Inspecting Costs	$10,476	$524	$11,000
Shipping Costs	$7,143	$357	$7,500
Total Costs	$647,516	$41,584	$689,100
Operating Income	$102,484	$416	$102,900
Operating Income %	14%	1%	12.99
Per Unit Operating Income	$1.71	$0.14
Requirement 4
Costs per Unit	Stick Umbrella	Collapsible Umbrella
Traditional	$10.93	$11.13
ABC	$10.79	$13.86
Difference	$0.14	$($2.73)
Requirement 5
Calculation of Labour Hours (note): 1) Labor hour per unit of stick umbrella is 0.2 and it is the same for the collapsible umbrella. While the units sold for the stick umbrella are 60,000 and for the collapsible umbrella are 3,000. Then multiply the labor hour per unit with the units sold, then the total amount for the stick umbrella is $12,000 and for the collapsible umbrella is $600. Adding these both amounts will total $12,600