Question: 3. How does Wilkerson's existing costing system operate? Develop a diagram to show how costs flow from factory expense accounts to products. 4. Develop and

3. How does Wilkerson's existing costing system operate? Develop a diagram to show how costs flow from factory expense accounts to products. 4.

3. How does Wilkerson's existing costing system operate? Develop a diagram to show how costs flow from factory expense accounts to products.

4. Develop and diagram an activity-based cost model using the information in the case. Provide your best estimates about the cost and profitability of Wilkerson's three product lines. What difference does your costs assignment have on reported costs and profitability? What causes any shifts in cost and profitability?

5. Based on your analysis in question 4, what actions might Wilkerson's management team consider to improve profitability?

Please explain, thank you!

Exhibit 1 Wilkerson Company: Operating Results (March 2000) Exhibit 2 Product Profitability Analysis (March 2000) Exhibit 3 Product Data

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