4. example in helping maintain Van Go Go efficiency levels and profits. [6 marks] TOTAL 25 MARKS QUESTION 4. Gloria Mars runs Mingle plc a chocolate bar manufacturer who mainly make one chocolate bar, the Moon bar. The Moon bar is made of chocolate, nougat and biscuit. The Moon bars are manufactured in a factory based in Amsterdam, Holland. The three components of the bars (chocolate, nougat and biscuit) are put together manually, this allows the bars to be sold as 'hand made chocolates for a premium price, but does mean there can be material 'variances'. The ingredients chocolate, nougat and biscuit can be sold separately, but is mainly made into Moon bars that are sold in 1 kg packets of 10 bars. The normal mix of 7 2. Discuss the img when viewed 3. Calculate Huend 4. Exs components required to make 50 packs of Moon bars (1kg per packet) is shown in the following cost card: Cost Card (Standard Usage) for 50 packs of Moon Bars 20 kg of chocolate at 2.50 per kg at 1.25 per kg 12 kg of nougat 18 kg of biscuit at 0.80 per kg 50.00 kg The actual raw material input used to produce a sample batch of 8 000 packs of Moon bars in a test run in February were as follows: 3 275 kg of chocolate 8 678.75 2 000 kg of nougat 2 400.00 3 200 kg of biscuit 2 464.00 8 475 kg 13542.75 The firm over the year makes three different versions of the Moon Bar the normal Moon Bar, a Christmas Moon Bar and an Easter Moon Bar. In essence, each variation uses the same quantities of the basic components -- just different flavourings are used - the Christmas bar is spicy, the Easter bar has an orangey flavour The predicted and actual sales for the year are shown as follows: Annual Budgeted Budget per Actual Sales Actual Total (Yearly) Sales packets packet (1 kg) packets (1 kg) Sales (1 kg) Normal 10 000 000 4.50 9 500 000 42 275 000 Moon Bar Christmas 2 000 000 5.00 2 150 000 10 857 500 Moon Bar Easter 4 000 000 5.50 4 250 000 23 247 500 Moon Bar Total 16 000 000 15 900 000 76 380 000 REQUIRED: 1. Calculate the material price and usage variances - split into yield and mix variances for the raw materials for the February trial batch. [6 marks] 8 the Discuss the implications of the variances of the 'batch', especially when viewed in monthly and annual terms. [4 marks] 3. Calculate the Sales Margin Price Variance and Sales Margin Mix and Quantity Variances. [6 marks] 4. Evaluate the benefits of sales of the three different types of Moon bar over the year. [4 marks] 5. Discuss the findings of the variance exercise in the light of the process of variance analysis and any limitations this process may have. [5 marks] TOTAL 25 MARKS 4. example in helping maintain Van Go Go efficiency levels and profits. [6 marks] TOTAL 25 MARKS QUESTION 4. Gloria Mars runs Mingle plc a chocolate bar manufacturer who mainly make one chocolate bar, the Moon bar. The Moon bar is made of chocolate, nougat and biscuit. The Moon bars are manufactured in a factory based in Amsterdam, Holland. The three components of the bars (chocolate, nougat and biscuit) are put together manually, this allows the bars to be sold as 'hand made chocolates for a premium price, but does mean there can be material 'variances'. The ingredients chocolate, nougat and biscuit can be sold separately, but is mainly made into Moon bars that are sold in 1 kg packets of 10 bars. The normal mix of 7 2. Discuss the img when viewed 3. Calculate Huend 4. Exs components required to make 50 packs of Moon bars (1kg per packet) is shown in the following cost card: Cost Card (Standard Usage) for 50 packs of Moon Bars 20 kg of chocolate at 2.50 per kg at 1.25 per kg 12 kg of nougat 18 kg of biscuit at 0.80 per kg 50.00 kg The actual raw material input used to produce a sample batch of 8 000 packs of Moon bars in a test run in February were as follows: 3 275 kg of chocolate 8 678.75 2 000 kg of nougat 2 400.00 3 200 kg of biscuit 2 464.00 8 475 kg 13542.75 The firm over the year makes three different versions of the Moon Bar the normal Moon Bar, a Christmas Moon Bar and an Easter Moon Bar. In essence, each variation uses the same quantities of the basic components -- just different flavourings are used - the Christmas bar is spicy, the Easter bar has an orangey flavour The predicted and actual sales for the year are shown as follows: Annual Budgeted Budget per Actual Sales Actual Total (Yearly) Sales packets packet (1 kg) packets (1 kg) Sales (1 kg) Normal 10 000 000 4.50 9 500 000 42 275 000 Moon Bar Christmas 2 000 000 5.00 2 150 000 10 857 500 Moon Bar Easter 4 000 000 5.50 4 250 000 23 247 500 Moon Bar Total 16 000 000 15 900 000 76 380 000 REQUIRED: 1. Calculate the material price and usage variances - split into yield and mix variances for the raw materials for the February trial batch. [6 marks] 8 the Discuss the implications of the variances of the 'batch', especially when viewed in monthly and annual terms. [4 marks] 3. Calculate the Sales Margin Price Variance and Sales Margin Mix and Quantity Variances. [6 marks] 4. Evaluate the benefits of sales of the three different types of Moon bar over the year. [4 marks] 5. Discuss the findings of the variance exercise in the light of the process of variance analysis and any limitations this process may have. [5 marks] TOTAL 25 MARKS