Part 1, only.A) compute the direct material price and efficiency variances for each of the three inputs Amal, Brill, and Comad and the total price and efficiency variance B) compute the direct-labour price and efficiency variances.
Assignment fl Far! 1: anal sis 4 mm work in a mu of u to 4 )e0 ile.- Annapolis Sticky Division mafactures and sells two special purpose adhesrves, qum and Zob, The two products emerge from the same production process, which requrres three inputs materials: Amak, Brill, and Comad. The division developed standard Costs for these two adhesives as follows: (these are standardcosts to produce IO unitsof outputz' 7'u1iits of Yum and? units Of Zob). "w nm-.....-.-' $14.40 16.80 Materials - Comad l kilogram at $5.15er kilogram 5.15 "/ WE? $6l60 Materials - Amak 6 kilograms ai $2.40 per kilogram ' - l l Materials -- Brill 4 kilograms $42O per kllogram fy'lbtal materials input 11 kilograms Labour (applied at $5.60 per kilogram x 11 kilograms) Overhead - Variable (applied at $2.80 per kilogram x 11 kilograms) 30.8O Oxkrlkead - Fixed (applied at $5.00 per kilogram X 11 kilograms) 55.00 Joint costs to produce 10 units of output (7 Yum ; 3 Zob) $183.75 Cost assigned to the two joint products Product Units output Market Total Joint costs" Standard value per - cost per kilogram unit Yum 7 units $2O $l40 $105.00 $15 Zob 3 units 35 105 78.75 $26.25 10 units $245 $183.75 * Joint costs arte allocated to the products on the basis of market value. . . {fix ' Normal monthly volume IS 11,000 kilograms of Input materials processed or 10,000 units "wv" qw-r' output of both Yum and Zob"Some variations of in " ' ' ' N . - put quantities are enmss bl the quality of the finished products. p 1 e WlthomACC318 Actualwproduction of Yum and Zob outputs amounted to 11,400 units. The product1on costs were calculated as follows: Materials - Amak at?" 7,500 kilograms at $2.40 per kilogram $18,000 t A" b 4,050 kilograms at $42O per kilogram l7,010 Materials -- Comad ' l,100 kilograms at $5.15 per kilogram 5,665 [tx $40,675 Labour for 12,650 kilograms processed $70,840 Materials - Brill Total materials input 12,650 kilograms fi '- Units output: Yum 7,900 units Zob 3,500 units Reguired: (a) Compute the direct-material price and efficiency variances for each of the three inputs Amak, Brill, and Comad and the total price and efficiency variances. (b) Compute the direct-labour price and efficiency variances. (c) Compute the direct-material mix and yield variances for each of the three inputs Amak, Brill, and Conrad and the total mix and yield variances. Part2: writin 20 marks Standard costing system has been widely practiced for a long time in many industries because it is a good tool to keep business operations efficient. On the other hand, there have been voices (e.g., Modern Times (193 6), The Corporation (2003)) critical of standard costing system. These critical voices blame standard costing system as an impersonalizing and dehumanizing tool. Present, in no more than 400 words but at least 200 words, your opinion on the efficiency vs. ethical aspects of standard costing system
