The controller has assembled the following information:

	Stick	Collapsible
Units Sold	60,000	3,000
Selling Price	$12.50	$14.00
Direct Material Cost per Unit	$3	$3.10
Direct Labor Cost per Hour	$7.50	$8.00
Variable Manufacturing Overhead	$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

Table 1: Direct Cost Information and Activities

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

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

Calculate the allocation rates for each cost driver using ABC.

Use the traditional costing approach to calculate the total cost and the unit cost of the stick and collapsible umbrellas.

Use ABC to compute the total costs and the unit cost for the stick and collapsible umbrellas.

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.

This is what I have so far, I need help with the operating income percentages and the other areas in bold print. Thanks!

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	$292,662	$17,838	$310,500
Total Costs	$652,662	$36,438	$689,100
Operating Income	$97,338	$5,562	$102,900
Operating Income %	13%	13%	$13
Per Unit Operating Income	$1.62	$1.85	$2
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	$33,962	$2,038	$36,000
Material Handling Costs	$25,083	$2,917	$28,000
Machine Setup Costs	$13,382	$618	$14,000
Production Costs	$87,353	$11,647	$99,000
Assembly Costs	$75,404	$4,596	$80,000
Inspecting Costs	$10,476	$524	$11,000
Shipping Costs	$7,143	$357	$7,500
Total Costs	$647,514	$41,585	$689,100
Operating Income	$102,486	$415	$102,900
Operating Income %	14%	1%	13%
Per Unit Operating Income	$1.71	$0.14	$2
Requirement 4
Costs per Unit	Stick Umbrella	Collapsible Umbrella
Traditional	$10.92	$11.12
ABC	$10.79	$13.86
Difference	-$0.13	$2.74