a. United Trading sells three products as follows.

Product	Footballs	Baseballs	Rugby balls
Selling price/unit	7kshs	6kshs	9kshs
Variable Cost/unit	3kshs	4.5kshs	5kshs
Budgeted sales(units)	2000kshs	4000kshs	3000kshs

Assume that the sales mix is 'fixed' in these proportions. Fixed costs are Kshs 20,000. Required: Determine the beak-even point in units and Kshs.

b) Simple Soup Limited manufactures and sells soups in a JIT environment. Soup is made in a manufacturing process by mixing liquidized vegetables, melted butter and stock (stock in this context is a liquid used in making soups). They operate a standard costing and variances system to control its manufacturing processes. At the beginning of the current financial year they employed a new production manager to oversee the manufacturing process and to work alongside the purchasing manager.

The production manager will be rewarded by a salary and a bonus based on the directly attributable variances involved in the manufacturing process.

The standard cost card is as follows for the period under review.

	kshs
0.90 litres of liquidized vegetables @kshs 0.80/ltr	0.72
0.05 lites of melted butter@Kshs 4/ltr	0.2
1.10 litres of stock @ Kshs 0.50/ltr	0.55
Total cost to produce 1 litre of soup	1.47

During the month of May 2022 production department data is as follows:

	Bought	Costing(Kshs)
Liquidised vegetables	82,000 Litres	69,700
Melted Butter	4,900Lites	21,070
Stock	122,000 Litres	58,560

Required: Calculate the following for the month of May 2022. You are not required to comment on the performance that the calculations imply. Round variances to the nearest Kshs. i) material price, ii) mix and iii) yield variance

C.)

Kenbrew produces and sell two display units; Canta and Zanta in the market. The standard cost of various raw materials and direct labour per unit are as follows:

	Canta	Zanta	Standard Price per kg of Raw material Raw material
Raw Material X	4kgs	6kgs	shs 20
Raw material Y	5kgs	8kgs	shs 40
Raw material z	3kgs	2kgs	shs 100
Direct labour	4hrs	5hrs

During the month ended March 2017, the company produced 150 units of Canta and 80 units of Zanta and consumed raw materials as shown below:

	Canta	Zanta	Actual Price per kg of Raw material Raw material
Raw Material X	750kgs	800gs	shs 25
Raw material Y	590kgs	700kgs	shs 50
Raw material z	310kgs	150kgs	shs 80
Direct labour	5hrs	3.5hrs

Required i. Compute the total material yield and mix variances for the period (10 marks) ii. Explain reasons for the nature (adverse or favorable) of the yield and mix variances