QUESTION 4: Variance Analysis [20 marks] Since preparing the master budget for LEGO's sustainability range for FY 2022/23 (in your assignment) you have been asked to review their first month's Duly) performance and prepare direct materials and direct production variance calculations ready to present to the Head of Sustainability, LEGO Australia at your next meeting. Budgeted Direct Production Direct Production Cost Required: Time Cost Total LEGO PACK 1: The Monkey Kid 1.00 $ 38.50 $ 38.50 LEGO PACK 2: Minions 0.75 $ 38.50 $28.88 LEGO PACK 3: Classic 0.40 $ 38.50 $ 15.40 2. Calculate the Direct Materials Price Variance and Direct Materials Efficiency Variance for Pack 1: The Monkey Kid to indicate what caused the total variance in the cost of the materials used in production. Indicate whether the resulting variance is favourable or unfavourable (5 marks) Production Budget LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minions LEGO PACK 3: Classic Total Direct Production Cost Used DP Cost $38.50 $28.88 $15.40 July Units July Cost 50 $ 3,090 1350 $38.901 100000 $_57461 Use the following information: Budgeted Direct Materials cost per LEGO pack 3. Provide two (2) potential reasons why the cost of the plant based direct materials and packaging may have decreased in July. [5 marks] Required: LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minions LEGO PACK 3. Classic Plant Based Bricks Packaging $ 52.75 $ 14.25 $ 38.50 $ 22.50 s 18.20 s 3.75 1. If the actual production units and costs for July were as below, complete the Actual and Variance columns (highlighted in the grey section of the 3 table below). (10 marks! Budgeted fi facturing Time/Production Machine Hours per product: $ 38.50 per hour Packaging LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minions LEGO PACK 3: Classic 1 0.75 0.4 hour hours hours Actual unit costs LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minions LEGO PACK 3: Classic Plant Based Bricks $ 52 $ 40 $ 17 $ $ $ 14 22 S Production Budget LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minion LEGO PACK 3: Classic DM Cost July $ 67.00 80 $ 61.00 1350 21.95 1000 Actual Production Budget LEGO PACK 1: The Monkey Ko LEGO PACK 2: Minions LEGO PACK 3: Classic DM Cost July $ 68.00 90 62.00 1300 $22.00 1010 Direct Materials used in production LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minions LEGO PACK 3: Classic Total Direct Materials Used $5,160 $82,350 $ 21,950 $ 109,660 Direct Materials cost used in production LEGO PACK 1: The Monkey Kid LEGO PACK 2: Minions LEGO PACK 3: Classic Total Direct Materials Used Budget Actuals Variance F/U $5,360 $82,350 $ 21,950 $ 109,660 Target Ending Direct Materials Inventory Less Beginning Direct Materials inventory Total Purchases of Direct Materials $ 24 609 $ 54,275 $79,994 Atite de