Brive plc has the following standards for its only product:

Selling price 110 per unit

Direct labor 1.00 hour 10.50 per hour

Direct material 3.00 kg 14.00 per kg

Fixed overheads 27.00 per unit based on 800 units per month

During May, there was an actual output of 850 units and the operating statement for the month was as follows:

Sales revenue 92,930

DL (890 hours) (9,665)

DM (2,410 kg) (33,258)

Fixed overheads (21,365)

Operating profit 28,642

There were no inventories of any description at the beginning and end of May

a. Prepare the flexible budget and compare it to the actual results.

b. Calculate all the variances in as much detail as the information provided allows.

c. Reconcile the budget variances.

d. Discuss each variance, stating an opinion that could be the cause of the variance and who would be the responsible manager (position).