Equivalent Units of Production. Mars Products had 3,000 units in beginning WIP inventory; all were completed and transferred out during the period. During the period 6000 units were started. Of the 6000 units, 1000 were completed and transferred out, AND 5000 units were partially completed. These 5000 units were 60% complete for Assembly and 30% complete for Packaging. Cost of beginning WIP inventory were $95,000 for Assembly and $66,000 for Packaging. Costs incurred during the period were $115,000 for Assembly and $110,000 for Packaging. Homework Problem \#3: Prepare three budgets. A Planning Budget at 1000 units. A Flexible Budget at 1100 units. An Actual Results Budget at 1100 units. Prepare a Variance Analysis by comparing the Flexible Budget to the Actual Results Budget. Homework Problem \#4: Showing the formulas, calculate the following variances: a) Materials Quantity Variance b) Materials Price Variance c) Labor Rate Variance d) Labor Efficiency Variance e) Variable overhead Rate Variance f) Variable Overhead Efficiency Variance. Make or Buy Decision: Ashley Bicycle Parts makes sets of pedals for 10 -speed bikes. The company has the following costs per unit for each of the set of pedals: Direct materials $10 Direct labor 4 Variable overhead 1 Supervisor's salary 3 Allocated overhead 5 Total cost per unit $23 An outside supplier has offered to sell 10,000 units (set of pedals) to Ashley Bicycles for $200,000. The Supervisor's Salary is avoidable; that is, the supervisor will not be needed if the parts are purchased from the outside supplier. The Allocated overhead is unavoidable; that is, the company will have the overhead costs regardless of whether it makes or buys the parts. Homework Problem H5: Should the company make or buy the parts? Prepare a Make/Buy differential analysis to show if the company should continue to make in-house or buy from the outside supplier