Some initial comments have been received about performance in respect of the 'FitEasy in 2020: The sales director is delighted with the results and she is requesting that the sales team receives a bonus in recognition of its performance during 2020; The purchasing manager is insistent that, despite criticism from the production team, he has purchased wisely and has saved the company money by buying the metal from a new supplier. He feels that further improvements would be made if a Justin Time (JIT) purchasing policy was introduced; The production director is upset at being criticised for the labour rate variance and feels that she had to do something about low morale amongst the workforce during the 2020 global pandemic Required (a) In so far as can be ascertained from the information provided, use the variances to comment on the performance of the sales director, the purchasing manager and the production director, and reach a conclusion as to the overall performance of FLtd in 2020. (14 marks) (maximum for (a) 700 words) The financial controller of F Ltd has pointed out that, due to efficiencies in industry working practices, a more realistic standard time for labour for the 'FitEasy' would have been 1.5 hours per unit. (b) 0) Use this revised standard for labour time per unit to separate the stated labour variances into their planning and operational variances. (3 marks) (ii) Explain why it is important to separate variances into their planning and operational elements. (4 marks) (maximum for (b)(i) 150 words) (c) Discuss TWO operational considerations of introducing a Justin Time purchasing policy for a company such as F Ltd. (4 marks) (maximum for (c) 200 words) (Total: 25 marks) Some initial comments have been received about performance in respect of the 'FitEasy in 2020: The sales director is delighted with the results and she is requesting that the sales team receives a bonus in recognition of its performance during 2020; The purchasing manager is insistent that, despite criticism from the production team, he has purchased wisely and has saved the company money by buying the metal from a new supplier. He feels that further improvements would be made if a Justin Time (JIT) purchasing policy was introduced; The production director is upset at being criticised for the labour rate variance and feels that she had to do something about low morale amongst the workforce during the 2020 global pandemic Required (a) In so far as can be ascertained from the information provided, use the variances to comment on the performance of the sales director, the purchasing manager and the production director, and reach a conclusion as to the overall performance of FLtd in 2020. (14 marks) (maximum for (a) 700 words) The financial controller of F Ltd has pointed out that, due to efficiencies in industry working practices, a more realistic standard time for labour for the 'FitEasy' would have been 1.5 hours per unit. (b) 0) Use this revised standard for labour time per unit to separate the stated labour variances into their planning and operational variances. (3 marks) (ii) Explain why it is important to separate variances into their planning and operational elements. (4 marks) (maximum for (b)(i) 150 words) (c) Discuss TWO operational considerations of introducing a Justin Time purchasing policy for a company such as F Ltd. (4 marks) (maximum for (c) 200 words) (Total: 25 marks)