hacha Inc is a manufacturing firm and has provided following data related to costs: Details...Fixed Cost/Month ($)..Cost/unit of production ($) Wages and Salaries.. 22200.. 15 Parts and Supplies..x.. 7 Equipment Depreciation.. 1600.. 0.4 Lorry Operating Expenses.. 6000.. 1.4 Rent.. 3270 .. x Administrative Expenses.. 4500.. 0.7 Chacha computes the total costs as fixed cost/month plus variable cost. The company expected to produce 2600 units in May, but actually produced 2900 units. The products selling price is $46 per unit. Instructions: a) Prepare static budget at the company's expected level of production (2.5 Marks) b) Prepare a flexible budget at the company's actual level of production (2.5 Marks) c) Indicate the variances wheather favoarable or unfavorable (2 Marks)

4 hacha Inc is a manufacturing firm and has provided following data related to costs: Details...... ..Fixed Cost/Month ($)............Cost/unit of production ($) Wages and Salaries. 22200 15 Parts and Supplies.. 7 Equipment Depreciation.... 1600. 0.4 Lorry Operating Expenses............. 6000. 1.4 Rent........... 3270 Administrative Expenses....... 4500. 0.7 X Chacha computes the total costs as "fixed cost/month plus variable cost". The company expected to produce 2600 units in May, but actually produced 2900 units. The product's selling price is $46 per unit. Instructions: a) Prepare static budget at the company's expected level of production (2.5 Marks) b) Prepare a flexible budget at the company's actual level of production (2.5 Marks) c) Indicate the variances wheather favoarable or unfavorable (2 Marks)