Mesra Sdn. Bhd. produces mattresses and has determined the following direct cost categories and budgeted amounts: Purchasing manager is answerable for material variances while operation manager and marketing manager are answerable for manufacturing labour variances and marketing labour variances respectively. (i) Based solely on variances above, what would be your opinion on the performance of purchasing manager, operation manager and marketing The company prepares its budget quarterly every year. The company expected to manager? March 2017). (12 marks) Required: (ii) Which variances should be further investigated by the company? Explain briefly (a) Prepare a flexible budget for direct cost for the first quarter of the year ending 31 your reason(s). March 2017. (4 marks) (4 marks) (b) Assume the following variances were presented to the management after the actual results were reported for the first quarter of 2017 (Total: 20 marks) Mesra Sdn. Bhd. produces mattresses and has determined the following direct cost categories and budgeted amounts: Purchasing manager is answerable for material variances while operation manager and marketing manager are answerable for manufacturing labour variances and marketing labour variances respectively. (i) Based solely on variances above, what would be your opinion on the performance of purchasing manager, operation manager and marketing The company prepares its budget quarterly every year. The company expected to manager? March 2017). (12 marks) Required: (ii) Which variances should be further investigated by the company? Explain briefly (a) Prepare a flexible budget for direct cost for the first quarter of the year ending 31 your reason(s). March 2017. (4 marks) (4 marks) (b) Assume the following variances were presented to the management after the actual results were reported for the first quarter of 2017 (Total: 20 marks)