(a)[2]
Calculate the overall budgeted profit for August.
(b)[1]
Calculate the profit actually made in August.
(c(i))[2]
Calculate the sales price variance.
(c(ii))[2]
Calculate the sales volume variance using standard profit margin per unit.
(c(iii))[2]
Calculate the labour rate variance.
(c(iv))[2]
Calculate the labour efficiency variance.
(c(v))[2]
Calculate the fixed overhead expenditure variance.
(c(vi))[2]
Calculate the fixed overhead volume variance.
(d)[5]
Prepare a statement that reconciles the budgeted profit at 4000 units level with the actual profit. Begin the statement using the budgeted profit from (a).
(e)[5]
Advise the directors on whether T Limited ought to switch to the new supplier or not. Justify your answer.