Energizer Cements Private Ltd. produces and sells one product only, E7 cement, the standard cost for one unit being as follows. The fixed production overhead included in the standard cost is based on an expected monthly output of 900 units. Required: a) Flex the original budget and show the variances between the flexible budget and actual results (6 marks) b) Calculate the following variances: - Direct material price and usage variances - Direct labour rate and efficiency variances (14 marks) c) Discuss the reasons for the adverse/unfavourable variances and provide recommendations to improve ( 15 marks) d) Discuss the behavioural implications of allowing staff to participate in the budget setting process (15 marks) Energizer Cements Private Ltd. produces and sells one product only, E7 cement, the standard cost for one unit being as follows. The fixed production overhead included in the standard cost is based on an expected monthly output of 900 units. Required: a) Flex the original budget and show the variances between the flexible budget and actual results (6 marks) b) Calculate the following variances: - Direct material price and usage variances - Direct labour rate and efficiency variances (14 marks) c) Discuss the reasons for the adverse/unfavourable variances and provide recommendations to improve ( 15 marks) d) Discuss the behavioural implications of allowing staff to participate in the budget setting process (15 marks)