Appendix Mix and Yield Varlances for Substitutable Inputs7-47. PRICE AND EFFICIENCY VARIANCES, BENCHMARKING AND ETHICS. Sunto Scientific manufactures GPS devices for a chain of retail stores. Its most popular model, the Magellan XS, is assembled in a dedicated facility in Savannah, Georgia. Sunto is keenly aware of the competitive threat from smartphones that use Google Maps and has put in a standard cost system to manage production costs of the Magellan XS. It has also implemented a just-intime system so the Savannah facility operates with no inventory of any kind.Producing the Magellan XS involves combining a navigation system (imported from Sunto's plant in Dresden at a fixed price), an LCD screen made of polarized glass, and a casing developed from specialty plastic. The budgeted and actual amounts for Magellan XS for July 2020 were as follows:Bedgeted Amounts Adfual Amounts Magillin XS units preduced 4.0004.400 Narrigation ayulami caut $81,600 $95,000 Marigation gratems used 4.0804.450 Pelvired glass cost 542000540.300 Skeets of polarized glass used 800816 Plastic casing cost $12.000512.500 Ounces of specially plastic used 4.0004.250 Direct manufacturing labor costs 5M000537,300 Direct marnafacturing labor hours 2,0002.040Appendlx Mix and Yield Varlances for Substitutable Inputs7-47. PRICE AND EFFICIENCY VARIANCES, BENCHMARKING ANDETHICS. Sunto Scientific manufactures GPS devices for a chain of retail stores. Itsmost popular model, the Magellan XS, is assembled in a dedicated facility inSavannah, Georgia. Sunto is keenly aware of the competitive threat fromsmartphones that use Google Maps and has put in a standard cost system tomanage production costs of the Magellan XS. It has also implemented a just-intime system so the Savannah facility operates with no inventory of any kind.Producing the Magellan XS involves combining a navigation system (imported from Sunto's plant in Dresden at a fixed price), an LCD screen made of polarized glass, and a casing developed from specialty plastic. The budgeted and actual amounts for Magellan XS for July 2020 were as follows:Bedgeted Amounts Adual Amounts Magellen XS units produced 4.0004.400 Narrigation aythema caut $81,600 $95,000 Navigation gyttoms used 4.0804.450 Peltrieed glass eost 542.000540.300 Skets of polarized glass used 800816 Plastic caring cont 512,000512.500 Ounces ef specially plastic used 4.0004.250 Direct manufacturing labor costs 53.000597,200 Direct manufacturing labor hows 2,0002.040Appendix Mix and Yield Variances for Substitutable InputsThe controller of the Savannah plant, Jim Williams, is disappointed with thestandard costing system in place. The standards were developed on the basis of astudy done by an outside consultant at the start of the year. Williams points outthat he has rarely seen a significant unfavorable variance under this system. Heobserves that even at the present level of output, workers seem to have asubstantial amount of idle time. Moreover,