Nicki Fenty Corporation manufactures a variety of beauty products in several departments and evaluates departments and departmental managers by comparing actual cost and output relative to the budget. Departmental managers help create the budgets and usually provide information about input quantities for materials, labor, and overhead costs. Chante Moore is the manager of the department that produces lip gloss. Chante has estimated these inputs for Lip gloss: Input Budget quantity per unit of output Direct materials 8 pounds Direct manufacturing labour 30 minutes Machine time 24 minutes The department produces about 100 units of lip gloss each day. Chante's department always gets excellent evaluations, sometimes exceeding budgeted production quantities. For each 100 units of lip gloss produced, the company uses, on average, about 48 hours of direct manufacturing labor (eight people working 6 hours each), 790 pounds of material, and 39.5 machine-hours Top management of Nicki Fenty Corporation has decided to implement budget standards that will challenge the workers in each department, and it has asked Chante to design more challenging input standards for the production of lip gloss. Chante provides top management with the following input quantities: Input Budget quantity per unit of output Direct materials 7.9 pounds Direct manufacturing labour 29 minutes Machine time 23.6 minutes Required: 1. Identify the budget preparation approach used (1 mark) 2. List and briefly discuss 1 advantage and 1 disadvantage of this approach to budget preparation using the context of the example given. (2 marks) 3. Discuss the following: a. Are these budget standards challenging for the department that produces lip gloss? (Use the numbers provided to support your argument) (2 marks) b. Why do you suppose Chante picked these particular standards? (Critical thinking) (2 marks) c. What steps can Nicki Fenty Corporation's top management take to ensure Chante's standards really meet the goals of the firm? Discuss this briefly, with reference to the current scenario as well as to other approaches to budget preparation