2. The following relates to information used in preparing the operational budget for Pet Planet for July and the pet toys product line. Selling price for pet toys $25 each Actual unit sales for pet toys for July were 4,200. Direct materials cost $36,000, Direct labour $18,900, Rent $4,500, Utilities $2,500, Administration wages $7,000, Production supervisor salary $4,000. Budgeted amounts for July were as follows: 6,000 units $45,000 $30,000 $2,750 Pet Toys (sales) Direct materials Direct labour Utilities Fixed Costs: Administration wages Production supervisor salary Rent $5,000 $7,000 $4,500 Profit/(Loss) $55,750 a) Prepare a variance analysis for July. This analysis should show the original budget, a flexed budget, actuals and relevant variances. (5 marks) b) To assist the owner of Planet Pets with their planning and control initiatives, briefly interpret and provide possible reasons for the non-zero variances in July. (Maximum 200 words)