4210 Variance Project Instructions Majerczyk

Dynamic Industrial is a relatively young company, with an unsophisticated accounting system. Dynamic Industrial manufactures two products, X370A, and Z410B. Each of the products has multiple components and materials (identified by SKU number), but assembly is relatively quick leaving no work in process inventory at the end of the period. Invoices are only logged and approved for payment if the full quantity of the SKU has been received. 1)Using the information provided, calculate the Materials Spending and Efficiency variance for each component/material for 2021. (Attach your solution in an excel file to the email) 2)It is believed that one of your purchasing agents has a familial relationship with one of the vendors for the company. Is there any evidence that any product experienced favorable arrangements with one of the vendors, potentially based on this relationship? What changes to the purchasing structure could be recommended to avoid this type of issue? (Write this as a one paragraph memo to the hypothetical owner of the company in the body of the email) Submit the project via email with an excel and word or pdf attachment to[email protected] by 5pm on Friday March 27th. The beginning and ending inventory accounts for each product are provided below: Beginning Inventory CountEnding Inventory CountUnits Sold X370A5,0404,04018,220 Z410B3,1302,00517,000 The company uses FIFO to value all inventory