Skim milk

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$66119.78+29699.5+0+495933.97+149974.55+34734.08+10541.99=$787003.87 Skim milk $46283.84+24280.4+0+357347.34+116427.61+23132.9+5980.55=$573452.64
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Chocolat e milk $19835.93+9289.89+38376.43+214179.33+71040.58+31068.02+2973.34=$386763. 52 Eggnog $16937.53+7882.33+35386.05+202725.89+66600.54+36470.79+4122.19=$370125. 32 2)This information will help understand changes in manufacturing process, since all the costs are separated. You can easily calculate future expenses. This information should help identify areas where process improvement is needed. Improved product costs lead to better estimates of costs for budgeting and planning. Question 3 The information in this analysis was very accurate. Some cost drivers were not used in this model because they are not significant. If we would use this data it would slightly change the outcome. I think some of the volume based cost drivers should remain the same, it helps calculate output. As for activities I probably would add Shipping and Handling since it cost some extra. Downstream costs are important just to see how good the customer service is and other activities, waste and breakage are insignificant, unless the rates are really high.
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