(a)[2]
Calculate the budgeted profit from the budgeted sales of 6000 units.
(b(i))[2]
Calculate the sales price variance.
(b(ii))[3]
Calculate the sales volume variance (as an indication of change in profit).
(b(iii))[2]
Calculate the direct material total variance.
(b(iv))[2]
Calculate the direct labour total variance.
(b(v))[2]
Calculate the fixed overhead volume variance.
(b(vi))[2]
Calculate the fixed overhead expenditure variance.
(c(i))[3]
Explain the likely causes of the sales volume variance calculated in (b)(ii).
(c(ii))[4]
Explain the likely causes of the direct labour total variance worked out in (b)(iv).
(d)[3]
Assess whether or not the company has been successful at controlling the direct material cost price. Justify your answer.