Gargantua pic has produced the following budget and actual information (Table 17.20).

a. Prepare a traditional budget versus actual report using the above figures.

b. Prepare a flexible budget for Gargantua.

c. Calculate all sales and cost price and efficiency variances.

d. Reconcile the original budget and actual profit figures using the variance analysis.

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Table 17.20 Gargantua budget and actual. Sales units Price per unit Direct materials Magna per unit Carta - per unit Labour per unit - Fixed costs Budget Actual 10,000 37.10 11,000 36 4 kg @ 1.50/kg 1 kg @ 5/kg 2.5 hours @ 7 75,000 46,500 kg cost 67,425 11,500 kg cost 58,650 26,400 cost 187,440 68,000