172 MANAGEMENT ACCOUNTING From book Management Accounting Principles And Applications Hugh Coombs, David Hobbs, Ellis Jenkins Sage Publication Pages 172 Pages 181 Case Study Budget Preparation and Variance Analysis Question Pages 181 Red Box Case Study: Budget Preparation and Variance Analysis Eiger PLC manufactures two types of high-quality ice axe, M1 and M2.The current man- aging director, C. Chaplin, formed the company in 1996. Your position is that of man- agement accountant and you normally report to the finance director; occasionally you are required to report to the managing director. The company uses a standard cost system and fully absorbs factory overheads into the cost of production. Closing stocks of finished goods are valued at the standard cost of production. Production and sales are planned to be at the same monthly level through- out the year 2004