Cyan plc manufactures a single product and operates a standard costing system. Budgeted sales and production for the month of January 2020 was 25,000 units. Standard costs for each unit are as follows: Sales price 100 per unit Direct materials 13 metres at 2 per metre Direct labour 3 hours at 12 per hour Fixed overheads are budgeted at 400,000 per month. The actual data for January 2020 is provided as follows: Sales price 98 per unit Units produced and sold 24,000 Direct material 14 metres at 1.85 per metre Direct labour 3.5 hours at 13.40 per hour Fixed overheads 390,000 REQUIRED: Please note: a maximum word count applies to parts (d) and (e) of this question ONLY. There are no maximum word counts for parts (a), (b) and (c). (a) Calculate the actual profit for the month of January 2020. (4 marks) (b) Discuss, and with specific reference to the impact upon businesses as a result of Covid- 19, why it is important to compare the actual performance to a flexed budget performance. (4 marks) (c) Calculate the sales price and volume variances, direct materials price and usage variances and direct labour rate and efficiency variances. For each variance calculated, indicate whether it is favourable or adverse. (18 marks) (d) Please note: the maximum word count for this requirement is 420 words. For each variance calculated in (C) above, explain in detail ONE potential cause of the variance. (12 marks) (e) Please note: the maximum word count for this requirement is 420 words. Analyse the extent to which allowing participation by staff in the budget setting process improves budgets and performance of individuals within a business. (12 marks)