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QuestionQuestion Two Y Ltd produces and sells a single produ

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QuestionQuestion Two Y Ltd produces and sells a single product, Y1. The… Question Two Y Ltd produces and sells a single product, Y1. The unit specifications of the product are as follows:?irect material AY:???????????????12 kg at ? per kgMachine time:???????????????????2 running hoursMachine cost per gross hour:???????? ??0Selling price per unit:?????????????? ?80? Ltd is required to fulfil orders for 8,000 units of Y1 per year. There are no stocks of product units at the beginning or the end of the year. Also, the stock level of the material AY remains unchanged throughout the year. ?he following additional information affects the costs and revenues:?roduction quantity is increased to allow for returns from customers which are replaced free of charge. Returns are due to specification failure and account for 5% of units initially delivered to customers.?roduction quantity is further increased to allow for the downgrading of 16% of product units at the final inspection stage.?% of the material AY input to the machine process is wasted due to processing problems.?% of the incoming material AY from suppliers is scrapped due to poor receipt and storage organisation.?ll of the units returned from customers are rectified using 0.5 hours of machine running time per unit. ?achine running time is 80% of gross machine hours and 20% of gross machine hours is machine idle time. ?oth downgraded production units found at the inspection stage, and rectified units returned from customers are sold at a discount of 25% on the standard selling price.? Ltd is aware of the problem of excess costs and it is planning a quality management programme to prevent a number of such problems from occurring. The programme will cost ?5,000 and it is estimated that the programme will have the following impact:? reduction in returns of products from customers to 2% of the units initially delivered.? reduction in the downgrading of product units at inspection to 4% at the final inspection stage.? reduction in the material AY losses in process to 1% of the input to the machine process.? reduction in stores losses of the material AY to 2% of the incoming materials.? reduction in machine idle time to 10% of gross hours used.?Required: ?)?Prepare summaries showing the calculations of (i) total production units (pre-inspection), (ii) purchases of material AY (kg), (iii) gross machine hours and (iv) total sales revenue for the year. In each case the figures are required for the situation both before and after the implementation of the quality management programme, in order that the order for 8,000 units of the product may be fulfilled. ?????????????????????????????????????????????????15 marks)?)?Comment on the relevance of a quality management programme and explain the meaning of the following terms: internal failure costs, external failure costs, appraisal costs and prevention costs giving examples for each, taken where possible from the information in the question.?????????????(10 marks)?Total: 25 marks)AccountingBusinessManagerial AccountingACCOUNTING MISC

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