On April 1, Virgo Industriesplans to introduce a product called Quest The company plans to sell each unit of Quest for $20.00. Management has forecast the following in sales units for the first three months April May June Sales units 60,000 56,000 70,000 Each unit of Quest requires 1 kg of Shine and 1 hour of direct labour Management wants to end each month with a Quest inventory level equal to 10 per cent of the following month's sales and a Shine inventory equal to 5 per cent of the following month's production. Shine can be purchased for $2 per kg and direct labour costs are estimated to be $7.00 per hour. As Quest is a new product, there is no opening inventory at 1 April. Required: a) How many units should Virgo industries produce in April and May? (3 marks) b) How many kilograms of Shine should be purchased in April? Virgo Industries plans to have no inventory of Shine on April 1. (3 marks) c) Calculate the budgeted direct labour costs in April? (2 mark) d) "Variance analysis presents results after the actual events have taken place and therefore it is of little use to management for planning and control purposes, particularly in a modern manufacturing environment". Discuss the above statement. (4 marks) 42 marlkel