8-6. The Burlington plant of Consumer Cosmetics is responsible for manufacturing all the lip gloss products that the company manufactures. In 2015 the plant had the following budgeted and actual costs. 2015 2015 Budget Actual $ Raw materials 100,000 10.0% $ 110,000 10.2% Direct labour 250,000 25.0% 275,000 25.6% Manufacturing overhead 400,000 40.0% 440,000 41.0% Distribution costs 100,000 10.0% 110,000 10.2% Administration 150,000 15.0% 140,000 13.0% Total $1,000,00 100.0 100.0 0 % $1,075,000 % Production units 850 kg 935 kg Required (a) Head Office is complaining about cost over-runs. It says that all the manufacturing costs are higher than the budget in both $ and %. As manager of the plant, how would you respond to justify your position? Ignoring price changes, etc., if you were told that the quantity to be manufactured in 2016 would be 1,000 kg, prepare the budget for 2016. (b)