Orchid Ltd. is a small furniture manufacturer. It was established as a family-owned business 30 years ago and prides itself on high-quality products. Most of its products are made to order as a result of direct orders from internet-based sales. Typically the company has been profitable, operating at the top end of the market; recently, however, costs appear to have been increasing and the company has also seen a decline in its sales. The workforce is highly skilled and recently several of the experienced craftspeople who make the products have retired, and the company has had problems recruiting, training and retaining suitably skilled employees. One of its products, a table, has the following standard costs: Direct materials (8m @ 30/m) 240.00 Direct labour (10 hours @ 25/hr) 250.00 Fixed overheads 160.00 650.00 Selling price 950.00 Standard profit margin 300.00 The table is made from solid oak and the above materials reflect the size of the table in square metres. The labour required to make the table is highly skilled. The monthly production and sales are planned to be 800 units. The actual results for March were as follows: Sales revenue 753,300 Less Direct materials (192,500) (7,000m) Direct labour (221,000) (8500 hours) Fixed overheads (130,000) Operating profit 209,800 There were no opening or closing stocks. The company manufactured and sold 810 tables; this is more than budgeted due to a successful marketing campaign. To complete this Individual Case Study Assignment: By Day 7 (Wednesday) Parts 1 and 2 should be submitted as an operating statement, as per your Key Concept Overview, and within the business report as required for part 3. Calculate the flexed and actual budget. Calculate the following variances: Sales variances; volume and price Direct material variances; usage and price Direct labour variances; efficiency and rate Fixed overhead variance; spending Present the above information as a part of a business report, providing possible explanations for the variances that you have calculated and suggestions as to how the company might try to improve its cost control. This Individual Case Study Assignment should be around 1,000 words for the main body of your business report.