Blueshore plc has produced the following budget and actual information. Budget Actual Sales units 10,000 11,000 Price per unit 37.10 36 Direct materials Material X (per unit) 4 kg @ 1.50/kg 46,500 kg - cost 67,425 Material Q- per unit 1 kg @ 5/kg 11,500 kg - cost 58,650 Labour - per unit 2.5 hours @ 7 26,400 hours - cost 187,440 Fixed costs 75,000 68,000 REQUIRED: (a) You are required to prepare a traditional budget versus actual report using the above figures. (4 marks) (b) Prepare a flexible budget for Blueshore plc to present actual versus flexed budget comparisons and also total variances. (6 marks) (c) Using Material X as an example, demonstrate how this cost can be broken down into price and efficiency variances. Briefly comment on the significance of the results of these variances to the company. (8 marks) (d) Discuss the merits and drawbacks of the use of variance analysis to organisations. (7 marks)