A look at the performance report affirmed Rahman's most exceedingly awful feelings. Rather than a planned profit of Tk 91,200, the report demonstrated the division made a loss of Tk7,200 in May. Taking into consideration the declining order, he considered an improved trend than demonstrated by the performance report. The factory accountant had connected the accompanying notice to the report: June 6, 12:00 noon

Please find attached the performance report for May. The profit figure is not as what we estimated it to be. It is to be noted that other than supervision costs most of the costs are under budget or at par almost. The unfavorable variance of costs associated with factory supervision was achieved by controlling other costs.

Work in Progress and finished goods inventory at the beginning and end of the month are zero.

Per unit standard costs used in budgeting this year were: Direct material Tk. 6 and Direct labor Tk. 16

It requires 130 grams (0.13 kg) of euro fine porcelain and 0.40 labor hour to produce one cup. Euro porcelain is a specialized material used in the ceramic product. Farr's estimated cost per kg of euro porcelain Taka 46. During the month, Farr purchased 1,820 kg of raw materials at the rate of Taka 46.92 per kg to produce 14,000 cups. All of the materials purchased were used for production. There were no ending raw materials.

During the month the company recorded 5,467 direct labor hours at an hourly rate of Taka 45 to produce 14,000 units of products. Budgeted cost of labor per hour was Taka 40 (direct labor cost per Unit 16/0.40 hour required to produce one unit)

QUESTIONS

1. Use the budget data to calculate the per-unit fixed and variable cost allocated to production. What was the actual cost per unit of production and shipping?

2. Draft a flexible budget based on the data provided.

3. Prepare a flexible budget performance report.

Mr. Expert, I need fresh and accurate answer and please don't skip any questions. I know the rules but it's my request to you :)