You are required to design inventory management on manufacturing 1200 units of inventories (products) in TWO (2) stages (life cycle) including the forecasting of the duration or time required and the total production cost (Direct materials (DM), Direct Labor (DL), Direct expenses (DE) and Overhead expenses (OH).

Prepare a columnar table showing the forecasted (standard) and actual costs having at least two favorable in stage 1 (DM & DL) and 2 (DE & OH) adverse variances.

Explain the possible reasons for the variances in point no.5 in the requirements for the project. (Actual production days is 30 same as forecasted).

1. Standard Production (Budgeted for the whole project) Costs per unit are as follows: -

Cost elements (Total for 2 stages)	$
1	Direct Material	50
2	Direct labor	20
3	Direct Expenses	20
4	Overhead	10

2. Requirements of the assignment are as below: -

1.	Scheduling	Gantt chart	Starts & Complete
2.	Resourcing	MRP (MPS) on Cost elements	TWO (2) Stages
3.	Budgeting (costs).	Std. Costs (As provided)	Total Budgeted costs. (Standard).
4.	Closeout (results).	Performance (Evaluation)	Results, Std. & Actual (Costs). Favorable / Adverse. Profitability (under or over) in each cost element.
5.	Summary & Reports (Strength /Weakness)	All cost elements	Production & Communication

Answer rating: 100% (QA)

1 Scheduling The scheduling of the production of 1200 units of inventory will be done in two stages The first stage will start from the date of the or... View the full answer