13 The following is an extract from Ellison Limited's monthly management report E Budgeting contribution 172,000 Variances Adverse Favourable Labour rate 3,600 Labour efficiency 8,000 Materials price Materials usage 10,800 4,800 14,400 12,800 Actual contribution (1.600) 170,400 The purchasing manager decided to buy a superior quality material that cost more than the standard material but gives rise to less waste. Production staff were able to convert this material into the final product faster than the standard time. However, an unbudgeted wage rise was implemented during the month. Q4(a). Justify the decision to purchase the superior quality material. You should calculate the increase in profit that is a direct result of purchasing the superior quality material as the basis of your argument. (4 marks) Q4(b). Ellison is considering introducing target costing in place of its current standard costing system but is concerned about how it can control costs once the products are in production. Identify THREE differences between target costing and standard costing. Fill in your answer here Format BIU x, x T (6 marks)