WPS Office File Edit View Insert Format Tools Tables Workspace Window Help LINE 12 100% Q Mon 11 Oct 1:14 pm Home W ACCT2003 Fi...xam S2 2021 9 . + L QUESTION 4: Variance Analysis [20 marks] Target Ending Direct Materials Since preparing the master budget for LEGO's, sustainability range for FY 2022/23 Inventory $ 24 609 in your assignment) you have been asked to review their first month's (July) Less Beginning Direct Materials Inventory $ 54,275 performance and prepare direct materials and direct production variance Total Purchases of Direct Materials $79,994 calculations ready to present to the Head of Sustainability, LEGO Australia at your next meeting. Use the following information: Budgeted Direct Production Budgeted Direct Materials cost per LEGO pack Direct Production Cost Required: Time Cost Total Plant $ Based LEGO PACK 1: The Monkey Kid 1.00 38.50 38.50 Bricks Packaging S LEGO PACK 1: The Monkey LEGO PACK 2: Minions 0.75 38.50 Kid 52.75 14.25 28.88 $ $ $ LEGO PACK 3: Classic 0.40 38.50 15.40 LEGO PACK 2: Minions 38.50 $ $ 3.75 July LEGO PACK 3: Classic 18.20 July Production Budget DP Cost Units Cost Budgeted Manufacturing Time/Production Machine Hours per product: LEGO PACK 1: The Monkey Kid $38.50 80 3,080 $ 38.50 per hour LEGO PACK 2: Minions $28.88 1350 38,981 LEGO PACK 1: The Monkey LEGO PACK 3: Classic $15.40 1000 15,400 Kid hour Total Direct Production Cost LEGO PACK 2: Minions 0.75 hours Used 57,461 LEGO PACK 3: Classic 0.4 | hours Required: Production Budget DM Cost July $ 1. If the actual production units and costs for July were as below, complete LEGO PACK 1: The Monkey Kid 67.0 80 $ the Actual and Variance columns (highlighted in the grey section of the 3rd LEGO PACK 2: Minions $1.0 1350 table below). LEGO PACK 3: Classic 21.95 1000 [10 marks] Direct Materials used in production Plant LEGO PACK 1: The Monkey Kid $ 5,360 Base LEGO PACK 2: Minions $ 82,350 Actual unit costs Bricks Packaging LEGO PACK 3: Classic $ 21,950 LEGO PACK 1: The Monkey Total Direct Materials Used $ 109,660 KidLEGO PACK 2: Minions $ 40 $ 22 LEGO PACK 3: Classic $ 17 $ 5 Actual Production Bud et LEGO PACK 2: Minions 62.00 1300 $ LEGO PACK 3: Classic 22.00 1010 Direct Materials cost used In Wig Variance F/U production Budget LEGO PACK 1: The Monkey Kid $ 5,360 LEGO PACK 2: Minions $ 82,350 LEGO PACK 3: Classic $ 21,950 Total Direct Materials Used $ 109,660 2. Calculate the Direct Materials Price Variance and Direct Materials Efciency Variance tor Pack 1: The Monkey Kid to indicate what caused the total variance in the cost at the materials used in production. Indicate whether the resulting variance is W or W [5 marks] 3. Provide two (2) potential reasons why the cost of the plant based direct materials and packaging may have decreased in July. [5 marks]