Question 3 - Balance Scorecard (10 marks) Bowser and Wario is a chain of hardware stores (like Bunnings). They are a retailer and importer. They have both and online and brick and mortars business. The senior management team has identified the strategic priorities for the business as on-time delivery and product quality for their online business. (i) For each of the strategic priorities, suggest three performance measures (Hint: use the three qualitative BSC quadrants to help you with the design). (6 marks) (ii) Will the achievement of these performance measures achieve high profitability? Explain. (4 marks) Question 4 - Standard Costing (10 marks) The standard cost of making a single product is: 5kg @$2.75 per kg 13.75 0.4 hours @$6.40 per hour 2.56 Factory overhead 0.4 hours @3.50 per hour 1.400 $17.71 The factory overhead rate is based on a budgeted production of 20,000 units for the year, and budgeted fixed factory overhead of $12,000 for the month. Actual transactions and results for the year were: Direct Materials purchased 200,000kgs @ 2.78 per kg Direct Materials used 101,800 kgs Direct labour incurred 8,300 hours @ 6.48 per hour Factory Overhead incurred $28,400 Number of units produced 20,000 Calculate: (i) two variances for Direct material (3 marks) (ii) two Variances for direct tabour (2 marks) (iii) two variances each for fixed and variable overheads (6 marks) Show all working out in determining the variances