Part A: (6 marks) Ahlia Company developed standard costs for direct material and direct labor. In 2020, Ahlia estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price Direct materials 0.10 pounds $30 per pound Direct labor 0.05 hours $15 per hour During June, Ahlia produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor- hours at an average wage of $15.25 per hour. Instructions: 1. Compute the direct materials price variance. (3 marks) 2. Compute the direct manufacturing labor efficiency variance. (3 marks) Part B: 6 marks) Zain company has a bottling plant for its drinks and has prepared flexible budgets: Bottles: 15,000 Flexible budgets 18,000 S 22,000 Production costs: $ Materials 30,000 44,000 38,000 54,000 Labor 45,000 Overhead 66,000 25,000 25,000 25,000 Part B: 6 marks) Zain company has a bottling plant for its drinks and has prepared flexible budgets: Bottles: 15,000 Flexible budgets 18,000 $ 22,000 Production costs: $ $ Materials 30,000 38,000 44,000 Labor 45,000 54,000 66,000 Overhead 25,000 25,000 25,000 Actual production was 19,500 bottles and the production costs incurred totalled $120,000 Instructions: What is the meaningful total variance for performance evaluation purposes? I Page 4 Part C: (6 marks) Part C: (6 marks) Ahmad Company produces two products, M and Z. In the year ending 30 April 2020, it produced 6,000 M and 12,500 Z and incurred costs of $1,850,000 The costs incurred are such that 30% are variable. 60% of these variable costs vary with the number of Z produced, with the remainder varying with the output of M. The budget for the three months to 31 October 2020 is being prepared using an incremental approach based on the following: . . All costs will be 6% higher than the average paid in the year ended 30 April 2020. Efficiency levels will be unchanged. Expected output: M 1,350 units Z 6,890 units Instructions: What is the budgeted cost for the output of M (to the nearest $100) for the 3 months ending 31 October 2020