INSTRUCTIONS: You are required to work in your respective groups on the short project presented below. The project is due for submission on Thursday, April 14, 2022. Please note that this project is based on the materials in Chapter 2, 9 & 10 of your textbook. As outlined in your course syllabus, please note that each group member gets the same mark if all the group members participate equally, but if the group reports a malingerer, he or she gets a yellow card and his/her mark is reduced by 10%. If there is no improvement, the student (malingerer) will get a red card which means a zero mark. PROJECT QUESTIONS The two Vice Presidents in charge of sales and of production in Eleganza Company have together prepared two budgets - one optimistic, one pessimistic - for Roger Fererer, the President of the Company. The two budgets are shown in columns (1) and (2) below. The actual results are shown in column (3). The company's cost accountant was confused as to how to present an analysis. Consequently, he produced variances of actual results against both the optimistic projection and the pessimistic projection, columns (4) and (5), respectively. (1) (2) (3) (4) Variance Variance Optimistic Pessimistic Actual from Optimistic from Pessimistic Budget Budget Results Budget Budget Units sold Sales 200,000 $2,000,000 75,000 $750,000 135,000 $1,350,000 $650,000 Direct materials Direct labor $ 200,000 400,000 $ 75,000 150,000 285,000 $ 140,000 S (60,000) (115,000) (60,000) S(600,000) $ 65,000 135,000 65,000 Indirect labor 106,000 43,500 72,000 (34,000) 28,500 Maintenance 20,000 20,000 22,000 2,000 2,000 Supplies 28,000 15,500 21,000 (7,000) 5,500 Power 160,000 60,000 108,000 (52,000) 48,000 Heat 50,000 50,000 53,000 3,000 3,000 Light 7,000 4,500 5,900 (1,100) 1,400 Rent 80,000 80,000 80,000 -0- -0- Insurance 20,000 13,750 17,000 (3,000) 3,250