3. French Confection is a clothing manufacturer. The budget for the year 2013 is as follows: Units Sales Fabric materials 10,000 400,000 Labour Fixed overhead Profit 225,000 (15,000m) 52,500 (5,000 hours) 75,000 47,500 After analysis the following variances are reported: Favourable materials usage variance of 1,350 labour rate variance of 2,250 Unfavourable Sales volume variance of 12,250 Sales price variance of 4,500 Material price variance of 3,352.5 Fixed overhead variance of 2500 The actual production was 9,000 units and all of them were sold. REQUIRED: a) Provide the flexed budget and the actual performance (include the quantities for labour and materials) for French Confection for the year 2013. (21 marks) b) Should French Confection investigate all variances? Describe the steps of an investigation for any 3 variances in more detail. (12 marks) c) French Confection is not satisfied with current production levels and is investigating the control systems that it could implement. Output control in particular seems like a good option to the company. Discuss in detail the circumstances under which this type of control will work and the potential adverse consequences of control. (11 marks) d) French Confection is not satisfied with current sales levels and is investigating a bonus system for the sales managers. Discuss how the bonus could be set. (6 marks)