f) If you were production manager for Miller Toy Company, would you be satisfied with these explanations for the MQV and the MPV? In other words, do the quantified amounts from 6d and 6e sufficiently explain the variances calculated in 6b and 6c? Explain why or why not. Make sure you answer addresses both the variances and uses 30 to 50 words with full sentences. MPV = ($2.93-$3.23) * 31,756 MPV=-0.3* 31,756 MPV = -9,527 9,527 U c) Calculate the Material Quantity Variance for August. You can use the formula: MQV = (SQ- AQ)SP Use F or U to indicate favorable or unfavorable. Note the sum of the material price variance (calculated in 6b above) and the material efficiency variance here should equal the spending variance for material in 4. SQ 7,450 4.51 = 33,600 AQ and SP is same as 6b orable or unfavorable. MQV (33,600-31,756) * 2.93 MQV = 1,844 2.93 MQV = 5,403 5,403 F d) During August, Miller Toy's main supplier was experiences significant difficulties such that they were unable to supply material to Miller Toy Company. Miller Toy started purchasing material from a new supplier. During August, they purchased 70% of their material from this new supplier. The company was required to pay 15% more than their standard price per pound. On top of the increased price, the company also paid $1,400 in expedited shipping costs to insure prompt arrival. Quantify the impact this situation would have on the company's material price variance. Note: You must estimate a dollar value relating to this situation and indicate if this would result in a Favorable or Unfavorable impact to the material quantity variance. 31,756 0.722,229 $2.93 1.15 $3.37 (SP-AP) * AQ ($2.93 $3.37)* 22,229 $-9,781 $9,781 U e) The material purchased from the new supplier (discussed in d above) was of high quality such that Miller Toy was able to product 15% more units than was expected (based on standard). Quantify (dollar value) the impact this situation would have on the material quantity variance. Indicate if the impact would be favorable or unfavorable to the material quantity variance. 33,600 1.15=38,640 (SQ-AQ) * SP (33,600-38,640) * 2.93 -5,040* 2.93= -14,767 14,767 U