(c) The company envisages outsourcing the shortfall in the production of any of the three types of jigsaw. Briefly comment on Four non-financial considerations that Metal Shop should consider. (6 marks) QUESTION 3: (20 MARKS) The management accountant of Candle Ltd is finding it difficult to cope with increasing demands for information and has asked for your help. You have been asked to prepare variance analysis information for the March board meeting. You have been provided with budgeted and actual information as shown below. Notes: 1. Actual fixed production overheads for March amounted to 172,400. 2. Budgeted fixed production overhead is 175,000 per month, absorbed to production on direct labour hours. 3. Variable production overheads are applied to products based on budgeted labour hours. 4. The company's standard selling price is calculated on a markup of 25% on the standard production cost. 5. The company operates a standard absorption costing principles for preparation of information. (a) Calculate the standard selling price. (4 marks) (b) Prepare a cost statement showing the original budget, flexed budget and actual results. (4 marks) (c) Calculate relevant variances in as much detail as the information permits. (10 marks) (d) Give two plausible reasons for the Material Price Variance and the Labour Efficiency Variance. (2 marks)