Case Study: Background Chainlink Fence manufactures two types of customised security fences for the residential use. The company sells exclusively to distributors, who in turn sell to independent stores and retail chains. Due to new entrants of several competitors in the market, Chainlink Fence experienced a decline in financial performance. Chainlink Fence's CEO, Robert Dilmar is concerned and asked for a budget report from the management accountant on the company's performance for December 2022. The management team is in the process of preparing and analysing the 2022 budget and put together the following information. Annual sales are expected to be 180 000 security fences (Steel Fence Panels: 140 000 units; Aluminium Fence Panels: 40 000 units). Budgeted sales for the period of November and December 2022 are provided below (Table 1). Table 1: Standard/Budgeted Sales in Units and Dollars for November and December 2022 Steel Fence Panels Aluminium Fence Panels Units Price Units Price November 12000 $365 3500 $1020 December 12200 $380 2600 $1100 The annual production is expected to be 180 000 security fences (Steel Fence Panels: 140 000 units; Aluminium Fence Panels: 40 000 units). Table 2 contains the material requirements and costs for each fence panel. These costs are not expected to change during the budgeted period. Assume that all units manufactured in December are sold in December. Table 2: Standard/Budgeted Direct Materials- Inputs and Costs as at December 2022 Aluminium Fence Steel Fence Panels Panels Steel Aluminium Quantity* Cost** 1.5 m Quantity* Cost** $35.50 0.5 m $35.50 1.5 m $210.00 Metal 1.5 m $18.50 1.0 m $18.50 *metres **per metre