Many companies that do business online must take confidentiality issues into consideration as well as controlling the integrity of the data. In this week's assignment, you examine confidentiality issues and controls that may be experienced by a state tax department. Read "Case 9-1: Protecting Privacy of Tax Returns" at the end of Chapter 9. Answer all questions related to the case study.CASE 9-1Protecting Privacy of Tax ReturnsThe department of taxation in your state is developing a new computer system for processing individual and corporate income-tax returns. The new system features direct data input and inquiry capabilities. Taxpayers are identified by social security number (for individuals) and federal tax identification number (for corporations). The new system should be fully implemented in time for the next tax season.The new system will serve three primary purposes:1.Tax return data will automatically input into the system either directly (if the taxpayer files electronically) or by a clerk at central headquarters scanning a paper return received in the mail.2.The returns will be processed using the main computer facilities at central headquarters. Processing will include four steps:a. Verifying mathematical accuracyb. Auditing the reasonableness of deductions, tax due, and so on, through the use of edit routines, which also include a comparison of current and prior years’ datac. Identifying returns that should be considered for audit by department revenue agentsd. Issuing refund checks to taxpayers3.Inquiry services. A taxpayer will be allowed to determine the status of his or her return or get information from the last 3 years’ returns by calling or visiting one of the department’s regional offices or by accessing the department’s website and entering his or her social security number.The state commissioner of taxation and the state attorney general are concerned about protecting the privacy of personal information submitted by taxpayers. They want to have potential problems identified before the system is fully developed and implemented so that the proper controls can be incorporated into the new system.REQUIREDDescribe the potential privacy problems that could arise in each of the following three areas of processing, and recommend the corrective action(s) to solve each problem identified:a. Data inputb. Processing of returnsc. Data inquiry (CMA examination, adapted)Please make this paper in APA Format.Please include a reference page and site sources within the paper.

Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: Fabrication Department factory overhead $570,000 Assembly Department factory overhead 266,000 Total $836,000 Direct labor hours were estimated as follows: Fabrication Department 3,800 hours Assembly Department 3,800 Total 7,600 hours In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Gasoline Engine Diesel Engine Fabrication Department 1.30 dlh 2.70 dlh Assembly Department 2.70 1.30 Direct labor hours per unit 4.00 dlh 4.00 dlh a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. Gasoline engine $fill in the blank 1 per unit Diesel engine $fill in the blank 2 per unit b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. Gasoline engine $fill in the blank 3 per unit Diesel engine $fill in the blank 4 per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the factory overhead rate method of allocating overhead costs. The factory overhead rate method indicates that both products have the same factory overhead per unit. Each product uses the direct labor hours . Thus, the rate method avoids the cost distortions by accounting for the overhead . Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $125,400 Cut and Sew Department overhead 212,800 Total $338,200 The direct labor estimated for each production department was as follows: Pattern Department 2,200 direct labor hours Cut and Sew Department 2,800 Total 5,000 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.05 0.06 0.07 Cut and Sew Department 0.08 0.10 0.12 Direct labor hours per unit 0.13 0.16 0.19 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department $fill in the blank 1per dlh Cut and Sew Department $fill in the blank 2per dlh b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove $fill in the blank 3 per unit Medium glove $fill in the blank 4 per unit Large glove $fill in the blank 5 per unitSingle Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $20,804 Indirect labor 51,556 Factory electricity 5,879 Indirect materials 12,211 Selling expenses 28,944 Administrative expenses 16,281 Total costs $135,675 Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: Budgeted Volume (Cases) Processing Hours Per Case Tortilla chips 5,700 0.12 Potato chips 7,200 0.10 Pretzels 2,700 0.15 Total 15,600 If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. $fill in the blank 1 per processing hour b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles. TotalFactory Overhead Per-CaseFactory Overhead Tortilla chips $fill in the blank 2 $fill in the blank 3 Potato chips fill in the blank 4 fill in the blank 5 Pretzels fill in the blank 6 fill in the blank 7 Total $fill in the blank 8