(a)[2]
Define the phrase 'variance analysis'.
(b)[4]
Explain two benefits of carrying out variance analysis.
(c)[3]
Prepare a statement that shows the flexed budgeted total production costs for 2020.
(d(i))[1]
Calculate the variance for direct materials.
(d(ii))[4]
Explain the causes of the direct materials variance. Support your answer with appropriate calculations.
(e(i))[1]
Calculate the variance for direct labour.
(e(ii))[4]
Explain the causes of the direct labour variance. Support your answer with appropriate calculations.
(f)[1]
Calculate the rate of overhead absorption.
(g)[2]
Calculate the variance for fixed overhead volume.
(h)[3]
Advise the directors on whether the company ought to use activity based costing (ABC) in 2021. Justify your answer.