Ouestion 1 (20 points) VENTURA MANUFACTURING COMPANY PRODUCES AND SELLS PRODUCT "AQUA AND THE FOLLOWING TABLE PRESENTS INFORMATION PERTAINING TO QUALITY OVER 2 YEARS: Item S Year! S Year 2 Warranty Repairs 900,000 400,000 270,000 400.000 Systems Development Quality training 130,000 210.000 Inspection 560,000 600.000 Net cost of scrap 750,000 900.000 2.300,100 870,000 810,000 1.430,000 420,000 580,000 Warranty replacements Rework labour and overhead Reliability testing Supervision of prevention activities Supervision of testing and inspection Allowances 40,000 70,000 80,000 120.000 630,000 130,000 100,000 170,000 140,000 200.000 Downtime due to defects in quality Depreciation of test equipment Quality improvement projects Cost of field servicing Disposal of defective products Revenues 210,000 1,320,000 340,000 50,000,000 320,000 600,100 500,000 50,000,000 Required: 1. Classify the cost items according to quality costs 2. Calculate the ratio of each category to revenues 3. Comment on the results. 4. Write in your own words the steps in details that you have done to reach your final answers. Question 2 (20 points) Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw materials at S13 per yard Raw materials used in production 12,000 yards Question 2 (20 points) Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw materials at S13 per yard Raw materials used in production 12,000 yards Direct labour costs (10.200 hours at S10 per hour) Actual variable overhead cost 584.150 Units produced 12.600 units Standards per unit of product Raw materials 1.1 yards at $15 per yard Direct labour 0.8 hours at $9.50 per hour Variable overhead 88 per direct labour hour Required: Compute the following variances for: 1. Direct materials variance (Price variance, quantity variance and total variance). b. Direct labour variance (Rate variance, efficiency variance and total variance). c. Variable overhead variance (Rate variance, efficiency variance and total variance). d. Write in your own words the steps in details that you have done to reach your final answers for requirement and conly