Alfa PLC Alfa Pie operates in the field of marketing and communications consultancy. The company is made of three teams, each of which is headed by a director as follows: s Content creation, headed by Chantal Story board ideation, headed by Steffan e Media development, headed by Mariel s [Each client is served by the three teams Each team comprises four to six full time members in addition to the team head. Chantal is responsible for hiring, firing and paying all full-time members of all teams. Mariel is responsible for overhead administrative activities. Steffan is responsible for finding clients and negotiating selling prices. Each team head is responsible for hiring freelance consultants. Freelance consultants work on desktop editing for each team and spend approximately the same time for each client. Each team head is also responsible for all other costs incurred by his or her respective team. These are all capacity costs, e.g. depreciation of computers, software licences, training courses, etc. The budget and actual results for 2012 are as follows: Number of clients Revenues Cost of full time employees (including heads) Content Story Media Cost of freelance consultants Content Story Media Other team costs Content Story Media Administrative costs Profit You are required to: e Critically evaluate the allocation of responsibilities. e Perform a variance analysis. e Allocate variances to Chantal, Steffan and Mariel. Budget 10 1,200,000 150,000 170,000 190,000 30,000 20,000 5,000 15,000 15,000 20,000 30,000 555,000 Actual 11 1,000,000 160,000 175,000 190,000 40,000 10,000 10,000 15,000 25,000 25,000 40,000 310,000