4: Variance Analysis (20 marks] Since preparing the master budget for Flyin' Fox ice blox for 2021 you have been asked to review their first quarter (Q1) performance and prepare direct materials variance calculations ready to present to the owners at your next meeting Use the following information: Direct Materials Budget Assumptions Kilos of fruit per carton Cost per Kilo of fruit Percentage of purchases paid in the quarter purchased Percentage of purchases paid in the quarter after purchase Budget 15 $1.20 50% 50% Direct Labour Budget Assumptions Direct labour-hours required per carton Direct labour cost her hour Manufacturing Overhead Budget Assumptions Variable manufacturing overhead per direct labour-hour Fixed manufacturing overhead per quarter Depreciation per quarter Mindent Schedule in Cartons) 08 $ 25.84 4.00 60,600.00 15,000.00 Depreciation per quarter 15,000.00 Direct Materials Budget Schedule (in Cartons) Required production (cartons) Kilos of fruit needed per carton (kg) Kilos of fruit needed to meet production (kg) Add desired kg of fruit ending raw materials inventory Total Kilos of fruit needed Less Kilos of beginning raw materials inventory Kilos of fruit/raw materials to be purchased Cost of fruit/raw materials per kg Cost of fruit/raw materials to be purchased Q1 2022 BUDGET 9,500 15 144,000 16,650 160,650 21,000 139,650 $1.20 5167,580 Required: 1. If the actual production (in cartons) for Q1 2022 was 8,900 and the cost per kg was $1.60 prepare the Actual Direct Materials Budget Schedule below (coloured grey) Assume all other budget assumptions were realised/did not change. [10 marks] Direct Materials Budget Schedule (in Cartons) Required production (cartons) Kilos of fruit needed per carton (kg) Glas of fruit needed to meet production (kg) Add desired kg of fruit ending raw materials inventory Total Kilos of fruit needed Leis Kilos of beginning raw materials inventory Kilos of fruit/raw materials to be purchased Cost of fruit/raw materials per ag BUDGET ACTUALS VARIANCE 9.600 15 144,000 1,650 160,650 21.000 130650 $120 $167,580 Cost of fruit/raw materials to be purchased 2. Calculate the Direct Materials Price Variance and Direct Materials Efficiency Variance to indicate the underlying cause in the total variance in the cost of the materials purchased. Indicate whether the variance was favourable or unfavourable (5 marks] (5 marks] 3. Provide two (2) reasons why the cost of the fruit/raw materials per kg increased in Q1 2022. [5 marks] E 27C