A company has prepared the following fixed budget for the coming year

Sales 11,000 units

Production 11, 000 units

. USD

Direct Material 50,000

Direct Labour 25,000

Variable overheads 12,500

Fixed overheads 10,000

Total 97,500

Budgeted selling price $ 10 per unit

At the end of the year , the following costs had been incurred for the actual production

of 13,000 units

USD

Direct Material 60,000

Direct Labour 28,500

Variable overheads 15,000

Fixed overheads 11,000

Total 114,500

The actual sales were 13,000 units for $136,500

Required

a) Explain the difference between flexible budget and fixed budget

b) Prepare a flexed budget for the actual activity for the year

c)Calculate the variances between actual and flexed budget (use a marginal costing approach)

d) Identify six users of financial information contained in the financial statements. State their respective interests