[lotal 25 marks] Question 4 Introduction Universal Fashion Lid operates several divisions in a dynamic environment, directors use the following management report to evaluate performance of division A. Division A uses the marginal costing method to calculate profit. Management Report Division A management report for the year ended 31st March 2020. Budget Actual Variance Sales units 4 500 7 250 Production units 5 000 7 500 Budget cost allowance RS RS Direct materials 65 000 87 500 22 500A Production labour 37 000 40 000 3 000AProduction overhead 44 000 60 000 16 000A Administrative overhead 13 000 12 500 500A Sales and distribution overhead 14 850 23 000 8 150A Cost behaviour Budgeted Production Labour includes a fixed part of Rs 24 500 and budgeted production overhead includes a fixed part of Rs 9 000. Administrative overhead is fixed and all other costs are variable. Top management not happy with performance of Division A Directors are disappointed with the performance of division A. But division A's manager argues that he made all efforts necessary to control costs and that the targets are not attainable and that the management report is misleading