QUESTION I NEED HELP WITH: What does the difference suggest we might be doing wrong with our bids? And if you were the CFO what activity area would you look to improve and give a few generic examples of options for improvement?

Background info:

Using Plantwide rate
	Quality	Superior	Superb				Quality	Superior	Superb
D.material	$ 830,000	$ 485,000	$ 92,000			Units to be produced	10,000	5,000	800
D.Labour	$ 691,100	$ 362,500	$ 66,576			D.Lab hour per unit	2	5	12
Overhead (plant wide)	$ 1,950,329.67	$ 2,437,912.09	$ 936,158.24
						Total labour hours required	20,000	25,000	9,600
Total costs	$ 3,471,429.67	$ 3,285,412.09	$ 1,094,734.24			*Budgeted OH rate	$ 97.52	$ 97.52	$ 97.52
Add: 30% markup	$ 1,041,428.90	$ 985,623.63	$ 328,420.27			Overhead (plant wide)	$ 1,950,329.67	$ 2,437,912.09	$ 936,158.24
Sales	$ 4,512,858.57	$ 4,271,035.71	$ 1,423,154.51
						Budgeted OH rate	$ 5,324,400	97.52
Units	10,000	5,000	800				54,600
Cost per unit	$ 347.14	$ 657.08	$ 1,368.42
S.P per unit	$ 451.29	$ 854.21	$ 1,778.94
Profit per unit	$ 104.14	$ 197.12	$ 410.53

Using ABC rate							budgeted costs	cost driver	Qty of cost driver	ABC RR
	Quality	Superior	Superb			Material handling	$ 258,400	no of parts	646,000	$ 0.40
D.material	$ 830,000	$ 485,000	$ 92,000			Production scheduling	$ 114,000	no of P.orders	570	$ 200.00
D.Labour	$ 691,100	$ 362,500	$ 66,576			Setups	$ 160,000	no of P.setups	200	$ 800.00
Overhead (ABC)						Macinery cost	$ 3,510,000	Machine hours	117,000	$ 30.00
Material handling	$ 120,000	$ 100,000	$ 38,400			Finishing	$ 1,092,000	Direct labour hours	54,600	$ 20.00
Production scheduling	$ 60,000	$ 14,000	$ 40,000			Packaging & shipping	$ 190,000	No of orders shipped	3,800	$ 50.00
Setups	$ 80,000	$ 40,000	$ 40,000
Macinery cost	$ 2,100,000	$ 1,050,000	$ 360,000
Finishing	$ 400,000	$ 500,000	$ 192,000
Packaging & shipping	$ 50,000	$ 100,000	$ 40,000
							Quality	Superior	Superb	Total
						No of parts per unit	30	50	120
Total costs	$ 4,331,100.00	$ 2,651,500.00	$ 868,976.00			Units to be produced	10,000	5,000	800
Add: 30% markup	$ 1,299,330.00	$ 795,450.00	$ 260,692.80			Total no of parts	300,000	250,000	96,000	646,000
Sales	$ 5,630,430.00	$ 3,446,950.00	$ 1,129,668.80			No of P.orders	300	70	200	570
Units	10,000	5,000	800			No of P.setups	100	50	50	200
Cost per unit	$ 433.11	$ 530.30	$ 1,086.22			No of machine hour per unit	7	7	15
S.P per unit	$ 563.04	$ 689.39	$ 1,412.09			Units to be produced	10,000	5,000	800
Profit per unit	$ 129.93	$ 159.09	$ 325.87			Total no of machine hours	70,000	35,000	12,000	117,000
						No of labour hour per unit	2	5	12
						Units to be produced	10,000	5,000	800
						Total no of labour hours	20,000	25,000	9,600	54,600
						No of orders shipped	1000	2000	800	3,800