3. Miss Yap makes custom-made voodoo dolls that are sold to doll collectors. The standard cost per unit of its most popular dolls is as follows: The budgeted production for the perlod was 10,000 units. RM Direct material: 4 kg at RM25 per kg 3 kg at RM22 per kg 2 kg at RM11.50 per kg 3 hours at RM12 per hour 100 Resin A Resin B Resin C Direct labour Variable overhead 3 hours at RM8 per hour Standard cost 66 23 36 24 249 Actual results for the period were as follows: Production (uni ts) 9,000 RM Direct material: 35,000 kg 28,000 kg 27,000 kg 30,000 hours 910,000 Resin A 630,000 296,000 385,000 Resin B Resin C Direct labour 230,000 Variable overhead The general market prices at the time of purchase for Resin A and Resin B were RM23 per kg and RM20 per kg respectively. Resins are bought when the customer prepays an order. She does not keep any resin or doll inventory during the period. as and when they are needed. Miss Yap will only make the dolls Required: (a) Prepare a statement which reconciles the flexed budget material cost and the actual material cost. The material price planning variances and the operational variances including material price, material mix and materlal yield must be included with your answer. [15 marks (b) Provide instances how budgetary slack could occur in an organization. (7 marks] ...71 (c) Explain how budgetary slack creates a detrimental situation for the finances of a company. [8 marks]