Actual results for the the year ended 2021: Activity level (units) Materials Labour Production overheads Administrative overhead Selling overheads 9,000 RM 61,000 90,000 90,000 32,000 8,500 Required: (a) Prepare the fixed budget of Signature Bhd. for the year 2021. (3 marks) (b) Prepare the variance analysis report using the flexible budgeting approach for the year 2021. (c) (8 marks) Explain ANY ONE (1) possible cause for each of the variances identified in the variance analysis report in part (b) above. (5 marks) (d) (e) Explain ANY THREE (3) possible courses of action that can be taken to improve any adverse variance identified in part (b) above. Explain THREE (3) problems in using fixed budget in the variance analysis report of Signature Bhd. for the year 2021. (6 marks) (3 marks) Signature Bhd. (SB) manufactures one of the components in smartphones namely S5. SB has produced the fixed budget for $5 at a normal production capacity of 15,000 units for the year 2021. The standard cost per unit for $5 is shown below: Materials Labour Production overhead Administrative overhead Selling overhead RM 5 3 8 2 The production overhead is a semi variable cost. One unit of $5 requires 30 minutes of labour hour and 30 minutes of machine hour. The fixed production overhead is absorbed at a rate of RM10 per machine hour. Administrative overhead remains constant within the normal production capacity. Selling overhead is constant for each unit. In addition, one machine operator will be hired to operate at the maximum of 5,000 machine hours per annum. Additional machine operators will be required if more than 5,000 machine hours are required. The annual salary of one machine operator is RM24,000. Recently, the company has encountered difficulty in controlling the production cost. In a recent meeting. the management accountant has proposed to use flexible budgeting as the control device to evaluate the company's performance.