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Question 2 John Buckley, the assistant Management Accountant to Ugonex Ltd, prepared an original budget at the beginning of year. However, the Managing Director of the company felt that this budget was unrealistic and asked John to revise the budget and base it on a different sales volume. John spent some time revising the budget and both the original and revised budgets are shown below complete. John also included the actual results for the year ended 31 January 2022. Ugonex Ltd - budneted and A: Adverse r: ravuuravie John considers this report is misleading to users and suggests that the budget should be flexed to the actual level of activity. He also suggests that the report clearly show those costs which are variable, semi-variable and fixed. Required: (a) Prepare a flexible budget, including variances and showing all revenue, costs and profit, for Ugonex Ltd for January. Clearly show those costs which are variable, semi-variable and fixed. Analysis of variances is not required. Clearly show all workings. Marks will be awarded for presentation and layout. (15 marks) (b) Explain to the Managing Director why the flexible budget variances differ from those shown in the results statement above