Question 30 Prost plc produces small carbon fibre shells that are one minor component used in the manufacture of racing cars The manufacture ot such shells is a relatively stable process which does not alter significantly year on year: however, the price ot the material that IS used tor production can vary significantly and it can be challenging to tind suitable and appropriately qualified labour e Prost has the following information available for the last production period_v Original budget Revised figure Actual tigurev Carbon fibre price per kg Labour hours per unit ot production Selling price per unit 5 S630 S42 6 S680 7 S690 The budgeted direct labour wage rate is $75 per hour. Including waste, each unit produced is expected to use 2_5kg ot carbon tibre_ Further details for the last production period are:v Budgeted production and sales of the carbon fibre shell Actual production and sales Actual material purchased and issued Actual direct wage rate 2,000 units 2,350 unitsv 6,100 kg $79 per hourv Prost plc has no stock lett at the end ot the production period Required:e a) Prepare a summary statement for the accounting period that reconciles budgeted contribution and actual contribution where a planning and operational (ex-ante, ex-post) variance system is in use. (20 marks) b) Based on your results for part a) evaluate the usefulness ot the planning and operational variance analysis tor Prost plc. Total 30 marksv (10 marks)v