Report should analyze BB CC’s current cost allocations

You are Cindy , completing the analysis and developing a final report to Alan , president of BBCC. The report should analyze BB CC’s current cost allocations and give advice for the future.

It should be formatted as a memo and include the following:

1. Revised 20X 7 income statement

a) Manufacturing overhead allocation BBCC has adopted a normal costing approach with manufacturing overhead costs allocated based on direct labour hours. However, the a ctual cost of product manufactured report in Exhibit 3 in the Project Details document appears to have included an allocation of actual manufacturing overhead based on a percentage of sales. Revise this report so the normal costing approach adopted by the company is properly reflected