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1: . E l . Usually, premium line of ice creams ingredients consists of 19% to 16% milk fat. 9% to 1.2% milk solids [caseins

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1: . E l . Usually, premium line of ice creams ingredients consists of 19% to 16% milk fat. 9% to 1.2% milk solids [caseins and either:r proteins], and carbohydrates [lactose] found in milk, 12% to 16% combination of sucrose and glucose-based corn syrup sweeteners. 0.2 % to 6.5% stabilizers and emulsiers, and 55% to 64% water which comes from the milk or other ingredients. Focusing on the Classic Product line, Nestle maintains 16% milk fat for texture. flavor. and creaminess. Assume the following production-related data for the demand of 9596!] units for the Classics Product Line: Standard Cast Direct materials Standard: 16 units of milk fat F 153.56I Actual: 1 5.99 unim of milk fat 1? 153.52 Direct labor Standard: 6.65 hour 6'66 per hour 44.26 Actual: [L63 hour F91] per hour 44.16 1vi'ariable manufacturing overhead Standard: 1'35 per DLH 22.95 Actual: F36 per DLH 22.63 Total Cost per unit of Bella Doll 1' 226.45 P 229.31] Direct Materials: Due to increasing prices of milk, Nestle decided to slightly cut down the milkfat content of the Classics Product Line to 15.99 units. 1With the international standard of 1:] to 16 units, 15.99 is still well above it. Direct labor: Human Resources Deparonent was able to hire personnel willing to work for F'TU per hour but was able to produce a unit of the product in 9.63 hours. Product [units Price Materials unit Classics 75,000 P 420 P 153.50 0.65 Layers 42,000 490 200.50 0.85 Extraaz 40,000 750 188.00 0.80 Ruby 35,000 450 287.70 1.20 Divine 50,000 540 160.60 0.70 The following additional information is available: a. The production process is machine intensive with adherence to strict sanitation standards and internationally accepted technical process flow for ice cream manufacturing. b. For ice cream production the company's plant has a capacity of 180,000 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. c. The direct labor rate of P68.00 per hour is expected to remain unchanged during the coming year. Variable overhead costs are P35.00 per direct labor hour. d. All of the company's nonmanufacturing costs are fixed e. The company's finished goods inventory is negligible and can be ignored. f. Fixed Costs total P25,260,000 per year. g. Net operating income for the year amounted to P21,345,930 content of the Classics Product Line to 15.99 units. With the international standard of 10 to 16 units, 15.99 is still well above it. Direct labor: Human Resources Department was able to hire personnel willing to work for P70 per hour but was able to produce a unit of the product in 0.63 hours.Variable Overhead: Hired personnel (operating machinery, using factory supplies, and maintaining the operations of the plant) managed overhead at an average of P36 per direct labor hour. Requirement: (9) Compute and write an analysis of the variances: Materials : Price, Quantity or Usage, Spending Variance . Labor & Overhead: Rate, Efficiency, Spending Variance (10) How much is the total spending variance of the period for the Classics Product Line? What are the possible causes of such materials, labor, and variable manufacturing overhead variances? Based on your variance analysis, what can you recommend

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