1 Walsh Ltd is a manufacturer of hanging baskets. The company uses a standard marginal costing system. The company's most popular hanging basket is the "Cooper". Below are the budgeted figures relating to "Cooper" for the month of January 2021: Sales Less costs: Materials: Per Unit Total 29.00 145,000 Glass 7.10 (35,500) Copper (0.25 square metres @ 6.80 per square meter) 1.70 (8,500) Hook (2 hooks @1.30 each) 2.60 (13,000) Labour (0.25 hr per basket @22 per hour) 5.50 (27,500) Variable Overhead (0.25 hr per basket @ 2.60 per hour) 0.65 (3,250) Fixed Production Overhead (17,450) Profit 39,800 For the month of January 2021, the company produced and sold 4,960 units and recorded the following actual results: Sales Less costs: Materials: 145,824 Glass (@7.00 each) (34,720) Copper (based on 1,250 square meters) (8,550) Hook (@1.25 each) (12,400) Labour (based on 1,220 hours) (26,962) Variable Overhead (based on 1,220 hours) (3,294) Fixed Production Overhead (16,430) Profit 43,468 Requirement: a) Prepare a profit statement based on marginal costing principles, showing the original budget, flexed budget and actual results. (6 marks) b) Reconcile the original budget profit to the flexed budgeted profit for January 2021. (4 marks) c) Reconcile the flexed profit to the actual profit for January 2021. (40 marks)