1. Sydney Ltd Company is a small tool manufacturing organization and sales of 3500000 in each year. The company is based on a process costing system, which includes four manufacturing departments of: feeding, processing, finishing and packaging (all located in a workshop). Fixed production overheads are absorbed on a blanket overhead absorption rate. Budgeted results and actual results for May 2018 are shown below: Mechanism department performance In 2018 May (deadline May 31, 2018) Actual Variance roduction (units) variable Direct material Direct labor 24000 E24845 E845 (A) 27750 29300 550 (A) ariable production 33300 35035 735 (A) Total variable 89180 C4130 (A) cost fixed cost of E3300 3334 34 (A) 1500 1500 300 240 Indirect labor ation 300 40 7 (A) ther tal fixed cost 30 027 6270 E6401 131 (A) Research 3728 and 3600 75 75 E6000 E7803 1803 (A) Total company cost otal cost Requirements 1, Read May performance report, by the report and other materials provided from elsewhere to (a ) List for the purpose and natures of the budget. (b) Point out the mistakes of the performance report and put forward measures to solve it. 2, Use the May materials to prepare a performance report of the mechanism department