Toddle Enterprises produces solid wood furniture and distributes it directly to major retail stores. Larry Berry was hired as the production supervisor for the childrens wooden rocking chair production department to improve a poorly run operation. The chairs are constructed of 15 linear feet of 5/8 by 4-inch pine lumber, 36 one-half inch wood screws, and two 20-inch rubber rocker rails. The materials are ordered by the purchasing department through approved suppliers. The supervisor that preceded Larry appeared to have little control of the cost and usage of materials, and continually had cost overruns. Larry has completed his six months of operations and wants to be sure he is on target for a 10% bonus that may accompany his performance evaluation if variances are under control. The budgeted costs for the six-months period for each of the three materials are presented here. Lumber Screws Rails Static budget $149,200 $16,540 $40,500 Flexible budget 154,000 17,250 42,960 Weekly materials price and quantity variances for the three materials for the six months during which Larry has been employed by Toddle Enterprises are provided here. Positive amounts indicate favorable variances and negative amounts indicate unfavorable variances. Direct material price and quantity variances - June through November Weeks Lumber Price Screws Price Rails Price Lumber Quantity Screws Quantity Rails Quantity 6/3 $(12) $135 $ 89 $224 $245 $(17) 6/10 5 132 95 278 288 (37) 6/17 (11) 134 120 235 249 (29) 6/24 33 100 129 245 245 16 7/1 (14) 148 112 225 265 (12) 7/8 (22) 151 119 280 199 (62) 7/15 (56) 104 112 230 168 4 7/22 (34) 128 138 242 201 (49) 7/29 (29) 145 114 196 224 21 8/5 44 123 150 178 226 (52) 8/12 33 148 126 117 124 5 8/19 78 160 78 156 98 (32) 8/26 78 155 45 38 44 (11) 9/2 115 99 39 48 56 (25) 9/9 124 104 12 40 49 (34) 9/16 194 127 24 (15) 88 (12) 9/23 112 126 (33) 12 (42) (26) 9/30 153 145 (23) 50 (5) (40) 10/7 175 144 (40) 16 (5) 11 10/14 164 123 (64) (56) 23 (8) 10/21 180 156 48 48 35 (40) 10/28 156 145 59 (12) 47 3 11/4 178 135 1 22 (18) (32) 11/11 116 156 89 (16) 55 14 11/18 128 120 (21) 20 6 (19) 11/25 107 126 (25) (4) 18 3 Instructions There are two parts to this problem. Use Excel to perform the following: a. Create a 2-D line chart for the material variance data. Include a descriptive chart title, axes labels, and a legend in the chart. b. Do you believe Larry is on target to receive a favorable performance evaluation? Explain. Evaluate any trends you see