(a)[2]
Calculate the budgeted profit from budgeted sales of 6000 units.
(b(i))[2]
The sales price variance.
(b(ii))[3]
Sales volume variance, as a measure of change in profit.
(b(iii))[2]
The direct material total variance.
(b(iv))[2]
The direct labour total variance.
(b(v))[2]
The fixed overhead volume variance.
(b(vi))[2]
The fixed overhead expenditure variance.
(c(i))[3]
The sales volume variance calculated in (b)(ii).
(c(ii))[4]
The direct labour total variance calculated in (b)(iv).
(d)[3]
Assess whether the company has or has not been successful in controlling the direct material cost price. Justify your response.