2 Baracko Ltd has prepared the following standard costs for one of its products. Direct material 2m * 4.00 per metre Direct labour 4 hrs * 11.25 per hour Production fixed overhead 9 per unit, based on expected 10,000 units The following data has been made available for the quarter ended 31 May 2021: 10,200 units were manufactured. On average, 2.2 metres of material were used per unit at a total cost of 87,516. Production employees were paid 11.50 per hour and have claimed wages for 40,500 hours. The total fixed overhead remained at the expected level of 90,000. Required: (a) A summary statement showing the standard cost per unit, the flexed budget for the actual production units and the actual costs. (8 marks) (b) Calculate the following variances, stating whether each is favourable or adverse: Material price and quantity variances Labour rate and efficiency variances (8 marks) (c) A report on the variances that have occurred. The report should include: - A brief explanation of why businesses flex their budgets. An analysis of the variances, including possible reasons which may explain why the actual results are different to the budgeted figures. Suggestions for possible remedial actions. (15 marks)