1. The following information was recorded by ABC Ltd for April Budget Actual Quantity Quantity Sales () 30,000 1,000 units 22,400 800 units Material costs () 10,000 10,000 m 7,200 9,000 m Labour costs () 5,000 1,000 hrs 2,400 600 hrs Total fixed overheads 10,000 10,000 *m = metres, hrs = hours Required: a. Construct a flexed budget for April. Ensure you calculate the profit using the flexed budget. (7 marks) b. Calculate the variances for April as follows. Ensure you indicate whether each variance is favourable or adverse. Show your workings. (i) The sales volume variance (3 marks). (11) The sales price variance (3 marks). (iii) (iv) The material usage variance (3 marks). The material price variance (3 marks) The labour efficiency variance (3 marks). (vi) The labour rate variance