QUESTION 3. Smooth U ltd produce ready-made mixed alcohol drinks: The standard proportions for each 1 litre 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 [25 marks] 2. Evaluate the findings of the variance exercise in the light of using the Excel spreadsheet and the specific variance analysis for Smooth U. [10 marks] TOTAL 35 MARKS QUESTION 3. Smooth U ltd produce ready-made mixed alcohol drinks: The standard proportions for each 1 litre 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 [25 marks] 2. Evaluate the findings of the variance exercise in the light of using the Excel spreadsheet and the specific variance analysis for Smooth U. [10 marks] TOTAL 35 MARKS