(a)[4]
With reference to standard costing, State two advantages and two disadvantages.
(b)[6]
Prepare budgeted income statements for the master budget and the flexed budget for March 2020.
(c)[4]
Prepare a statement that reconciles the budgeted sales revenue from the master budget with total actual sales revenue for March 2020, making use of the relevant variances.
(d)[4]
Identify the variances that would change if the selling price were cut to $13 per unit. Show the revised figures for these variances. Use the table below in your answer.
(e)[7]
Advise the directors on whether they should proceed with the proposed reduction in selling price to $13 a unit or not. Support your answer with calculations.