Q1. Smooth U ltd produce ready-made mixed alcohol drinks: The standard proportions for each 1litre mixed drink are: 250ml alcohol at $ 4.0 per litre (1000 ml) 700ml of fruit juice at $ 1.0 per litre 50ml of botanicals at $ 9.0 per litre No inventories of raw material are kept. Purchases are made as needed. The actual raw material inputs used to produce 1000 bottles in December was: 259 litres of alcohol $ 1 061.90 710 litres of fruit juice $ 674.50 53 litres of botanicals $ 490.25 1 022 litres $ 2 226.65 Smooth U make three different alcohol mixed drinks, most of the adjustments does not significantly affect the standard cost: Whisky Mash - (WM); Gin Winder (GW); Vodka Crush (VC). The standard production and sales schedule split between the three products is: 6 bottles WM: 1 bottles of GW: 3 bottles VC. The following sales prices are based on per bottle values as follows: Budget Total Budget Actual Total WM 6000 $ 20 (5 430 bottles) $ 105 885 GW 1000 $ 15 (1 300 bottles) $ 20 800 VC 3000 $ 18 (3 370 bottles) $ 59 986 Total (10 100 bottles) $186 671 REQUIRED: 1. Use an excel spreadsheet to calculate the variances. Show as many variance details as possible, also the cell formula details in the Excel spreadsheet 2. Evaluate the findings of the variance exercise in the light of using the Excel spreadsheet and the specific variance analysis for Smooth U. Q1. Smooth U ltd produce ready-made mixed alcohol drinks: The standard proportions for each 1litre mixed drink are: 250ml alcohol at $ 4.0 per litre (1000 ml) 700ml of fruit juice at $ 1.0 per litre 50ml of botanicals at $ 9.0 per litre No inventories of raw material are kept. Purchases are made as needed. The actual raw material inputs used to produce 1000 bottles in December was: 259 litres of alcohol $ 1 061.90 710 litres of fruit juice $ 674.50 53 litres of botanicals $ 490.25 1 022 litres $ 2 226.65 Smooth U make three different alcohol mixed drinks, most of the adjustments does not significantly affect the standard cost: Whisky Mash - (WM); Gin Winder (GW); Vodka Crush (VC). The standard production and sales schedule split between the three products is: 6 bottles WM: 1 bottles of GW: 3 bottles VC. The following sales prices are based on per bottle values as follows: Budget Total Budget Actual Total WM 6000 $ 20 (5 430 bottles) $ 105 885 GW 1000 $ 15 (1 300 bottles) $ 20 800 VC 3000 $ 18 (3 370 bottles) $ 59 986 Total (10 100 bottles) $186 671 REQUIRED: 1. Use an excel spreadsheet to calculate the variances. Show as many variance details as possible, also the cell formula details in the Excel spreadsheet 2. Evaluate the findings of the variance exercise in the light of using the Excel spreadsheet and the specific variance analysis for Smooth U
