Mens Clothing Company produces men's ties since 1995. In order to reasonably plan and closely control their manufacturing costs, they use the budgeting system. The following budgeted and actual amounts are released to top management for 2020 and they asked you, a cost accountant, to prepare a performance budget report so that they can analyze all type of variances including both favourable and unfavourable Cost Budget at 5,000 Units Direct materials Direct labour Equipment depreciation Indirect labour Indirect materials Rent and insurance $45,000 52,000 7,000 3,600 5,000 13,000 Actual Amounts at 4,800 Units $51,000 48,000 7,000 4,300 4,700 13,000 Instructions: a. Prepare a flexible budget report for Mens Clothing Company for the year. When creating a flexible budget, ensure to provide full calculation steps. (10 marks) Cost Variances Variances Budgeted costs at 5,000 units $45,000 Flexible Budget at 4,800 units Actual costs at 4,800 units 1800 U 43200 7800 U $51,000 52,000 2080 U 49920 1920 F 48,000 7,000 N/A 7000 N/A 7,000 Direct materials Direct labour Equipment depreciatio n Indirect labour Indirect materials 3,600 144 U 3456 4,300 844 U 5,000 4800 4,700 200U 100F 13,000 13000 13,000 N/A N/A Rent and insurance b. What is the master budget? Briefly explain components of the master budget. I What are advantages and disadvantages of the master budget? (10 marks)