(a)[6]
Prepare the flexed budget for April and show the total budgeted profit.
(b(i))[2]
Calculate the labour efficiency variance for April.
(b(ii))[2]
Calculate the labour rate variance for April.
(b(iii))[2]
Calculate the materials usage variance for April.
(b(iv))[2]
Calculate the materials price variance for April.
(c)[2]
Suggest one reason for each of the materials usage and materials price variances.
(d)[6]
Advise the directors on whether they ought to have taken this action, backing up your answer with calculations where relevant.
(e)[3]
State three benefits to the company of using a standard costing system.