(a)[5]
Prepare the flexed budget so that it displays the budgeted profit for July.
(b)[2]
State what the term "variance analysis" means.
(c(i))[1]
sales price variance figure
(c(ii))[1]
sales volume variance figure
(c(iii))[1]
direct material total variance figure
(c(iv))[1]
direct labour total variance figure
(c(v))[1]
fixed overhead total variance figure.
(d(i))[4]
Calculate the two variances that together make up the direct material total variance.
(d(ii))[4]
Explain the likely causes behind the variances calculated in (d)(i).
(e)[5]
Advise the directors of Y Limited on whether the company ought to continue the strategy in the long run. Justify your answer.