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Name: Type your name here Project 5 worth 15 pts. Save you file using your first initial, last name, and name of project. Upload to project 5 link. There are 2 problems, which are set up on separate worksheets within this workbook. Please use this workbook as your exam template and prepare your solution on the specific problem works On the questions that I ask for comments and explanations, I expect more than a one sentence response. Problem 1 worth 8.5 pts and covers material from chapters 10 and 11. Problem 2 Worth 6.5 pts. And covers Chapter 11 material Submit one excel file containing your solution to this assignment. You must show your work to earn any credit, so just typing in the answer will not be acceptable and Referencing cells or typing out your calculations are acceptable methods of showing your work. Save your file using the first initial and last name and the assignment name. Remember it is your responsibility to take the time to verify that your file has uploaded correctly. If e of project. rkbook. specific problem worksheet. ne sentence response. You need to make sure your response is answering my question. not be acceptable and you will not earn credit. g your work. uploaded correctly. If there are problems, please contact me immediately. Problem 1 Worth 8.5 pts. Please make sure you review chapter 10 and 11, and my demonstration from chapter 10. The roofing company manufactures shingles. Standard Cost Sheet per shingle Direct materials Direct labor Variable Manufacturing overhead Fixed Manufacturing overhead Asphalt 1.5 pounds direct labor 0.01 hour direct labor 0.01 hour direct labor 0.01 hour Total standard cost per shingle $0.07 per pound $10 per hour $2 per hour $10 per hour Budgeted fixed manufacturing overhead for the period is Budgeted units to be produced Standard fixed manufacturing overhead based on expected capacity of $60,000 600,000 Units 6000 direct labor hours The following information is available regarding the company's actual operations for the period. Shingles produced Materials purchased: Asphalt Materials used Asphalt Direct labor Manufacturing overhead incurred: Variable Fixed Grading Rubric Each Variance calculation worth Each U or F designation 530,000 760,000 pounds 750,000 pounds 5,000 hours $0.08 per pound $11.00 per hour $11,050 $2.21 VOH rate per direct labor hour $59,000 0.75 pts. 0.25 pts. 1 pt. each for variance Comments 0.5 Total pts. Possible 8.5 pts. Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 1. Calculate the direct materials price and quantity variance. Direct-material purchase price variance should be based on material purchased, since you want to isolate the variance as soon as possible. See bottom page 418 Direct-material Quantity variance should be based on materials used, since this is monitoring the production efficiency. See top of page 418. Direct-material purchase price variance Direct Material Quantity variance 2. Calculate the direct labor rate and efficiency variances. Labor rate variance Labor Efficiency variance 3. Variable manufacturing overhead spending and efficiency variances. Variable overhead spending variance Variable overhead efficiency variance 4. Fixed manufacturing overhead budget and volume variances. Fixed Manufacturing overhead budget variance Fixed overhead volume variance 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances. Problem 2 Worth 6.5 pts. A small local blood bank has been trying to support the needs of the community, and has processed over 20% more blood than had been originally planned for the month. The following is a cost control report. Blood Bank Cost control report For the Month ended April 20XX Actual Liters of blood collected Budget 600 Variable Costs: Medical Supplies Lab Tests Refreshment for Donors Administrative supplies $ Total variable costs Variance 500 100 9,000 $ 8,000 $ 6,800 6,000 1,200 900 500 375 17,500 15,275 1,000 800 300 125 2,225 U U U U U Fixed Costs Staff Salaries Equipment Depreciation Rent Insurance Total Fixed Costs Total Cost $ 10,000 $ 10,000 2,800 2,775 1,000 1,000 550 530 14,350 14,305 31,850 29,580 0 25 U 0 20 U 45 U 2,270 U The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergencies in the community. The managing director has heard that you just finished a course that discussed flexible budgets. He has asked you to assist him in developing a flexible budget that will show his superiors that he has controlled costs in most areas. Grading Rubric: Each number in revised cost control report 0.2 pt. each U or F variance designation 0.25 pt. each Comments each for #2 and #3 0.5 Total points possible 6.5 Required: Hint: Review the narrated PowerPoint for chapter 11 1. Prepare a new cost control report for April using the flexible performance approach. The variable and fixed cost labeling has been set correctly, so do not change this around. 2. Comment on how you developed this revised report and what it means. 3. Do you think any of the variances in the report you prepared should be investigated? Why? Solution: You need to show your work either by cell reference or showing your calculation to the side. Also, make sure designate the Variance U or F. Blood Bank Revised Cost control report For the Month ended April 20XX Actual Budget Variance U or F Liters of blood collected Variable Costs: Medical Supplies Lab Tests Refreshment for Donors Administrative supplies Total variable costs Fixed Costs Staff Salaries Equipment Depreciation Rent Insurance Total Fixed Costs Total Cost 2. Comment on how you developed this revised report and what it means. You must explicitly explain how you computed the numbers in the revised cost control report. 3. Do you think any of the variances in the report you prepared should be investigated? Why? Do not answer that no variances should be investigated, since the Blood Bank is concerned with safety issues that might be impacted by changes in cost