7) Fill in the table below showing, by cost components, the:

a) Original (static) budget [2 marks]

b) Flexible budget [3 marks]

c) Actual costs [2 marks]

d) Total flexible-budget variance and briefly explain why the information provided by flexible budgets is more meaningful than that presented by the original (static) budget. [2 marks]

Calculate the following variances:

a) Direct materials price variance [3 marks]

b) Direct materials usage variance [3 marks]

c) Wage rate variance [3 marks]

d) Labor efficiency variance [3 marks]

Original (Static) budget Total flexible- Actual budget Flexible budget costs variance Units of gamelan () () () () Direct materials Direct labour Variable overhead Fixed manuf. Overhead Original (Static) budget Total flexible- Actual budget Flexible budget costs variance Units of gamelan () () () () Direct materials Direct labour Variable overhead Fixed manuf. Overhead