Management Accounting,

Requirements are as attached, required to solve all the points as mentioned, point a and point b (i,ii and iii)

Instruction: Answer both parts of this question, which are unrelated a. Some studies in the US indicate that people who felt they had control over their own destiny performed better when they participated in preparing their own budgets, whereas those who felt 'swept along by the tide' in life actually performed better when their budget was dictated from above. Do you agree that people should participate in preparing their own budgets? What are the pros and cons? (5 marks) b. Kettering Ltd Kettering Ltd manufactures school bags for children. The table below summarises the company's budget and actual performance for July 2017: Budget Actual Sales unit 10,000 11,000 Price per unit 37.10 36.00 Direct materials 5kg @2.20 58,000 kg, cost 126,075.00 Labour per unit 2.5 hours @7.00 26,400 hours, cost 187,440.00 Fixed costs 75,000 68,000