B and C needs to be done basically thanks a lot!

Hot Boil Limited manufactures one model of heating equipment, and does so by assembling kits it purchases. The company is considering introducing a standard costing system. It has piloted the system for one month with i) standard costs based on planned monthly production and sales of 5,000 units, and ii) fixed overheads being absorbed into production costs on the basis of Direct Labour Hours. For the month in question it was anticipated that: unassembled kits will cost in total 155,000, with each piece of equipment using one kit labour time spent on assembling kits into completed units will take 2,500 hours, with total direct labour cost of 30,000 fixed overheads will be 15,000 the selling price will be set by adding 25% to the standard cost. Actual figures for the month in question, based on production and sales of 6,000 units, were: total cost of unassembled kits used was 198,000 labour time spent on assembling kits into completed units was 4,500 hours, with total direct labour cost of 45,000 fixed overheads were 12,500 the selling price was 25 Required (a) Explain the nature and purpose of a standard costing system. (Maximum of 250 words) (8 marks) (b) Prepare the Standard Cost Card for the month in question for one unit. (5 marks) (c) Using the principles of Standard Cost Variance Analysis, calculate variances from standard. Show your workings If there is a particular area with no variance, state there is none and show your workings. Reconcile the budgeted and actual profits. (12 marks)