The packaged meal division of the Quick-Foods Corporation produces a variety of a packaged meals like Chicken Komma and Tikka Masala that are shelf stable at room temperature. The company is in its annual merit review process where individual, responsibility center as well as companywide performance is assessed. Last year when the packaged meal division Budget (i.e. investment center) had a return on Budget Actual Variance Investment (ROI) target of 8% and an actual Sales $63,000 $65,800 2,800 ROI of 8.2 percent, the company paid a year- end bonus of $250 to each employee in the Less operating expenses division. This year due to articipated Advertising 9,600 9,000 600 economic growth in general, the ROI target was raised to 9.5 percent. The division has Less production expenses Invested assets at the end of the year of Direct Materials 4,725 4,851 126 $260,000 Direct labor 8,400 9,250 850 Variable Overhead 14,800 12,000 2,800 Rent on Equipment 4,600 4,000 600 Income from operations 20.875 26,699 5.824 All variable costs have been flexed for the budget column Required a. Complete the performance report, then speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances. b. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 126,000 units were produced Standards Actual Results Direct materiais Each unit should have 10 Actual production used 17325 pound of direct materials pounds of direct materials at purchased at $0,30 per pound an average cost of $0.28 per pound Direct labor Each unit should be produced Actual production required 740 in 20 seconds at a direct labor direct labor hours at an cost of $12 per hour average cost of $12.50 per hour Calculate the price. quantity and total manufacturing variance for direct materials and direct labor, as needed. round final calculations (e. each variance) to the nearest whole dollar. Given your results, speculate on a possible cause for each price and quantity variance and suggest a follow-up action for each variance The packaged meal division of the Quick-Foods Corporation produces a variety of a packaged meals like Chicken Komma and Tikka Masala that are shelf stable at room temperature. The company is in its annual merit review process where individual, responsibility center as well as companywide performance is assessed. Last year when the packaged meal division Budget (i.e. investment center) had a return on Budget Actual Variance Investment (ROI) target of 8% and an actual Sales $63,000 $65,800 2,800 ROI of 8.2 percent, the company paid a year- end bonus of $250 to each employee in the Less operating expenses division. This year due to articipated Advertising 9,600 9,000 600 economic growth in general, the ROI target was raised to 9.5 percent. The division has Less production expenses Invested assets at the end of the year of Direct Materials 4,725 4,851 126 $260,000 Direct labor 8,400 9,250 850 Variable Overhead 14,800 12,000 2,800 Rent on Equipment 4,600 4,000 600 Income from operations 20.875 26,699 5.824 All variable costs have been flexed for the budget column Required a. Complete the performance report, then speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances. b. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 126,000 units were produced Standards Actual Results Direct materiais Each unit should have 10 Actual production used 17325 pound of direct materials pounds of direct materials at purchased at $0,30 per pound an average cost of $0.28 per pound Direct labor Each unit should be produced Actual production required 740 in 20 seconds at a direct labor direct labor hours at an cost of $12 per hour average cost of $12.50 per hour Calculate the price. quantity and total manufacturing variance for direct materials and direct labor, as needed. round final calculations (e. each variance) to the nearest whole dollar. Given your results, speculate on a possible cause for each price and quantity variance and suggest a follow-up action for each variance