answer only question a and b

Jonathan's Lid is a small Midlands based manufacturing compa which focuses on the production of clock radios under the brand name "Bramwells". It produces two models: the Standard' and the "Super'. The company has been reasonably profitable in recent years but results have been variable, The managing director Jonathan Gill feels he is not fully in control of the company's finances and is disappointed with the latest results for January 2019, which show an operating loss. The company's system of budgetary control incorporates - on a marginal costing basis - standard product costs and detailed variance analysis. Standard product costs were calculated in 2018 in respect of the Month of January 2019. They are shown belowc January 2019 Standard Bramwell Super Bramwell Usage Elunit Usage Efunit Standard Selling Price 30.00 37.00 Standard Variable costs Materials W 23.00 per kilo 2.0 kilos 6.00 2.5 kilos 7.50 X E4.00 per Kilo 1.5 kilos 6.00 1.7 kilos 6.80 Y 25.00 per kilo 0.5 kilos 2.50 0.6 kilos 3.00 Total Materials 14.50 17.30 Direct Labour E10.00 per hour 0.5hrs 5.00 0.6hrs 6.00 Variable Overheads $4.00 per direct labour hour 2.00 2.40 Packaging Price per unit 1.00 1.25 Standard Variable Cost 22.50 26.95 Standard Contribution 7.50 10.05 Monthly Sales Targets 10.000 units 10.000 units Analysis of the results for January 2019 (shown in the table below) are based on the following information: 12,000 units of the Standard Bramwell were sold, (at an average price of $27 per unit), but only 9,000 units of the Super were sold (at an average price of E34 per unit). 49,000 kilos of Material W were consumed at an average price of $2.25, 35,000 kilos of X at an average price of $4.50 and 10,500 kilos of Y at $5.15. Direct Labour consisted of 12,000 hours at $11.00 and Variable Overheads rate was E4,50. The actual cost of packaging was $27,000 the company's fixed expenses were $115,000 (compared with $100,000 originally budgeted). You also discover that the market changed in early 2019, so following the market trend, prices for the two categories of Bramwell could have been Standard E28 and Super E33. Question continues on next page5. (Continued) Variance analysis report Units Produced & Sold Budget Flexed Actual Variances Budget units units units Standard Bramwell 10,000 12,000 12,090 2,90OF Super Bramwell 10,000 9.000 9.909 1.909A Total Units 20,000 21,000 21,000 1090F Income statement E E E E Sales Revenue Standard Bramwell 300,000 360,000 324,090 36,009A Super Bramwell 370,000 333,000 306,090 27.909A Total Sales Revenue 670,000 693,000 630,090 69.099A Variable Costs Materials W 135,000 139,500 110,250 29,250F X 128,000 133,200 157,500 24,300A 55,000 57,000 54.075 2.925A Total Materials 318,000 329,700 321,825 7.875F Direct Labour 110,000 114,000 132,000 18,900A Variable Overheads 44,000 45,600 54,000 8,400A Packages 22,500 23,250 27,090 3.750A Total Variable Costs 494,500 512,550 534,825 22.275A Contribution 175,500 180,450 95,175 85,275A Company Fixed Expenses 100,000 100,000 115,000 15,009A Operating net Income 75,500 80,450 -19,826 190.275A Jonathan is extremely worried to see the loss of $19,875 as opposed to the expected good net income of $75,500. Required a. Explain the meaning of the difference between the original budget and the flexed budget and calculate the sales volume contribution variance and the sales mix variance, (4 marks) b. Calculate the breakdown between price or rate and quantity or efficiency variances for each of the cost variances shown in the variance column, (6 marks) c. Calculate the material mix variance and explain what it means, (3 marks) d. Calculate the 'planning' and 'operational' variances for the sales of both Standard Bramwell and Super Bramwell and explain how this information is used, (3 marks) e. Comment on the overall picture which emerges of the performance of Jonathan's Lid in January 2019 and advise Jonathan on the most important issues to address (4 marks)