In early May 2021, you receive the following email from Una Volk, Finance Manager. From: Una Volk, Finance Manager To: Finance Officer Subject: Variance analysis and the CGMA cost transformation model I have just had a discussion with Jeremy Dickson, the Westland Production Manager. There have been few production issues in April and he is keen to understand how these are going to impact the foxed overhead variances. He has given me the following information about the issues that have arisen: It was necessary to appoint an additional production supervisor as the majority of the labour force was new and inexperienced. The experienced workers transferred from the Eastland factory spent a considerable amount of time in 'on-the-job' training of the new workers, The distributor required a higher number of mattresses in April than was originally planned and as a result more mattresses were produced in the month. I have provided some figures in Table (attached) that will be used to calculate the fixed production overhead expenditure, efficiency, capacity and total variances. I would be grateful if you could prepare some briefing notes that I can send to Jeremy. I have been reading some literature on the CGMA cost transformation model and think that we could usefully apply it in both the Westland factory and our Eastland operations. I have selected four of the areas of the model which I have listed below: CGMA's cost transformation model - Engendering a cost-conscious culture - Managing the risk inherent in driving cost-competitiveness - Understanding cost drivers and cost accounting systems and processes - Incorporating sustainability o optimise profits 2. Please also include in the briefing notes an explanation of these four CGMA cost transformation model and how these could be applied in AmaZZZing Beds. [48 marks] Una Volk Finance Manager AmaZZZing Beds