Answer part A and B and C and D

Question 4 Fountain Pen Ltd produces a mid.ranne fountain pen. No stocks of any finished products of The total actual profit from Product Superior-ink last month was considerably less than the budgeted amnimt Management are concerned about the decrease in profits during the month. The Management Accountant has suggested that a detailed variance analysis be carried out. Required: (a) Calculate the standard profit for Product Superior-ink. (2 marks) (b) Prepare a detailed variance analysis. Your answer should include the following variances: (i) material price, mix and yield (ii) labour rate and efficiency (iii) sales price and volume Clearly show all workings. (c) Prepare a reconciliation statement reconciling from the budgeted profit to the actual profit using your answers to (b) above. (d) Using your results calculated above comment on the performance of Fountain Pen Ltd (Total 20 mark