A Mechanical Design Company produces an innovative design of Battery used for electric cars. The standard...

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A Mechanical Design Company produces an innovative design of Battery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. ) Material usage variance; marks] (i) Material price variance; marks] () Total material cost variance; marks] [5 [5 [5 Table Q5a Materials Usage (units) Total cost (OMR) V 17 W 38 X 8 50 Y 2 38 Table Q5b Usage (units) 11,862 6,932 17,293 4,262 Total cost (OMR) 50,674 94,168 104,030 76,856 Materials V W X Y A Mechanical Design Company produces an innovative design of Battery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. ) Material usage variance; marks] (i) Material price variance; marks] () Total material cost variance; marks] [5 [5 [5 Table Q5a Materials Usage (units) Total cost (OMR) V 17 W 38 X 8 50 Y 2 38 Table Q5b Usage (units) 11,862 6,932 17,293 4,262 Total cost (OMR) 50,674 94,168 104,030 76,856 Materials V W X Y

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