2c) When compiling a budget, what kind of standard would you use? Give REASONS for your decision.

QUESTION 2 (32 marks) Paws Ltd has the following standard cost. Standard E17 Sales revenue Direct material Direct labour Notes E3 per kg E8 per hour Budgeted fixed costs were E4,OOO and budgeted sales in units 3,000 units 1 ,500 units were sold and the actual results for these sales were: Total Sales revenue Direct materials Direct labour Notes 6,000 kg 4,500 hours Actual E30,OOO E12,OOO E13,500 Actual fixed costs were E6,OOO.