3. M&M makes Product E, the standard costs of which are: Sales Revenue 40 Direct labour (1 hour) Direct materials (1 kg) (13) (12) (5) Fixed overheads Standard profit 10 The budgeted output for March 2021 was 1,000 units; however, the actual production was 1,100 units sold for 44,400. There were no inventories at the start or end of March. The actual production costs were: + Direct labour (1,075 hours) 14,513 Direct Materials (1,170 kg) 13,455 Fixed overheads 5,700 O Calculate the variance for March from the available information and use them to reconcile the budgeted and actual profit figures? (8 Marks) How will a flexible budget help this company to identify the budget variance? (2 Marks)