ANSWER THE FOLLOWING PROBLEMS AND PROVIDE SOLUTIONS WITH EXPLANATION:

PROBLEM 1 MAD Inc. manufactures a single product using 3 materials. For a 100 kg batch, the standard cost are as follows: Materials Standard Qty Standard Price Total M 60 kg P5 P300 A 36 kg P4 P144 D 24 kg P3 P72 Total 120 kg P516 During February, MAD Inc. produced 200 batches or 20,000 kg of its product and incurred these costs: Materials Quantity Price Total M 12,600 kg P4.80 P60,480 A 7,300 kg P4.10 P29,930 D 4,700 kg P3.40 P15,980 Total 24,600 kg P106,390 Compute and analyze the materials variance. PROBLEM 2 Dolly Kaye Company sells crinkles, its sole product. You are to analyze its gross profit given only the following data: 2019 2020 Sales 450,000 700,000 Cost of sales 315,000 495,000 Gross profit 135,000 205,000 Selling price of crinkles increased by 40% early 2020. Analyze the gross profit using 4-way analysis