Hi, Can I get help for 1)a, 1)b, and 1)c from the attached file? My deadline is in two hours so I am a little short on time.

Thanks.

Class 6: Variance analysis 1. La Mamma Ltd. La Mamma Ltd. manufactures gourmet pasta dishes for supermarkets in the UK. Its offices and production site are located in North London. La Mamma Ltd. sources all ingredients for its products from suppliers in Italy. The company operates in a competitive marketplace and has increasingly felt pressure from its customers to reduce the selling price of its products. One of the company's products is the 'Lasagne al Forno' ready meal. The standard cost card for the 'Lasagne al Forno' is shown below. It is common practice at La Mamma Ltd. to set standards and prepare the annual budget at the beginning of January. Standard cost 'Lasagne al Forno' Units of output 4,500 meals per calendar month Direct ingredients 0.4kg per meal at 2.00 per kg Direct labour 0.08h per meal at 6.08 per hour Variable production overhead 1.00 per direct labour hour Fixed cost 1,200 Selling price 2.30 per meal During November, the company produced and sold 4,000 of the 'Lasagne al Forno' meals using 400 direct labour hours. The total actual amount of direct ingredients used during the period was 1,800kg. The actual results for the week were as follows: Revenue Actual results Nov. 2011 7,960.00 Variable costs: Direct ingredients 3,960.00 Direct labour 2,432.00 Variable production overhead Fixed costs Operating loss 520.00 1,200.00 -152.00 Required: (a) Prepare a flexible budget for the 'Lasagne al Forno' product for the actual level of production during November and compute the flexible budget variance for each element of operating profit. [5 marks] (b) Using the appropriate variances, prepare a more detailed analysis of the flexible budged variances for direct and indirect variable costs. [8 marks] (c) Assuming that the budget was well set and achievable, suggest at least one possible reason for each of the variances identified in part (b) of this question. [7 marks] [Total: 20 marks] 17 2. Santa Santa Ltd manufactures marzipan pies. Last month, it budgeted to purchase and use 15,000 kg of marzipan at 2.10 per kg; budgeted output was 75,000 pies. Actual purchase and use during last month was 16,000 kg at 2 per kg; actual output was 74,000 pies. 1. Calculate the flexible budget variance. 2. Calculate the price and efficiency variances. 3. Comment on the results in requirements 1 and 2. 4. Why might managers find a Level 2 flexible-budget analysis more informative than a Level 1 static-budget analysis? Clearly show your workings. 3. Wheelmeal Wheelmeal operates a home meal delivery service. It delivers restaurant meals to customers who phone in their orders. Customer can choose from the menus of 12 restaurants in the area. The management accountant of Wheelmeal is reviewing last month's overheads. Variable overhead costs for items such as drivers' wages and fuel were budgeted at 17 per home delivery hour. Fixed overheads for the month were budgeted at 23,000. The budgeted number of home deliveries was 3,000. The accountant uses average delivery time as the base for allocating overheads. She budgeted that one delivery should on average take 45 minutes. Actual results for the past month were 34,292 variable overhead, 21,808 fixed overhead, 2,450 hours of home delivery time, and 3,220 home deliveries. 1. Calculate spending and efficiency variances for Wheelmeal's variable and fixed overhead for last month and evaluate the results. 2. Describe the difference between a direct materials efficiency variance and a variable manufacturing overhead efficiency variance. 3. Why is the flexible-budget variance the same amount as the spending variance for fixed manufacturing overheads? Clearly show your workings. 18