Mina Limited, a company based in Leyland, produces specialised cleaning equipment (machines). There has been an economic recession in Leyland and analysts have suggested that there would be a considerable negative impact on the economy of Leyland. As a result, it has become imperative for Mina Limited to revisit its budgeting systems. In the meantime, the company's management accountant, Bruce O'Leary, has prepared a budget to enable the company to produce 250 machines in November 2021. The standard unit costs and revenues associated with the production of the 250 machines are presented below: Sales Revenue 95.00 Direct Labour (2.5 hours) (28.75) Direct Materials: Small Parts (3 packets) (12.00) Large Parts (5 boxes) (41.50) Fixed Overhead (5.00) Standard Profit 7.75 Following production, the actual output in November was 237 machines (no inventories or work- in-progress at the end of the period, the sales revenue achieved was 26,070). The actual costs of production are as follows: Actual production direct labour hours (616.2) 7,394.40 Direct materials small parts (3 packets x 237) 2,844.00 Direct materials large parts (5 boxes x 237) 9,835.50 Fixed Overhead 1,250.00 (a) Relying on the information given above, calculate the variances for November 2021 and use these to reconcile the budgeted and actual profit figures. (18 marks) (b) The use of standard costing technique has attracted debate among both scholars and practitioners. Discuss the issues that arise from the use of a standard costing system. (12 marks)