KIWI COMPANY (A) Kiwi Company produces automobiles. It had budgeted sales and production of 10,000 cars for 2016 at a selling price of $5000 each. The company had budgeted the following costs for 2016: Standard Variable Manufacturing Costs per unit $4000 Fixed Manufacturing Overhead for year $3,000,000 Selling and Admin Costs: Variable (per unit) $500 Fixed (total for year) $1,000,000 The company actually sold 11,000 cars for $4800 each. Suppose that at the end of the year the financial results for the period are: Variable Manufacturing Costs $46,000,000 Variable Selling and Admin Costs $3,500,000 Fixed Manufacturing Costs $2,000,000 Fixed Selling and Admin Costs $1,200,000 One of the variable production costs is the cost of steel. The standards for steel purchase prices and usage as set at the beginning of 2016 were: Standard price of steel $25.00 per pound Standard quantity of steel per car 100 pounds per car Data on actual steel purchases for 2016 were: Actual cost of steel purchased and used Actual pounds of steel purchase and used $28,700,000 1,210,000 pounds Recall that budgeted production for the year was 10,000 cars, while actual production was 11,000. 1. Were total steel costs for 2016 greater or less than expected? By how much? 2. How much of a difference should have been observed due to the production level being higher than expected? How much difference is still unexplained? 3. The purchasing department is responsible for efficiently purchasing as much steel as the production department needs. What was the average price per pound at which steel was purchased? Did the purchasing department perform well? 4. The production department is responsible for efficiently using the steel to produce the necessary level of output. What was the average number of pounds of steel used to produce each car in 2016? Did the production department perform well