Page view All Read aloud Draw Highlight Erase 3007_EXAM 2021.pdf + File C:/Users/kaur%20pawanpreet/Downloads/3007_EXAM%202021.pdf 2 of 7 Type here to search + Question 1 Maeda Ltd is a furniture manufacturer which has been only using static budget data to compare with actual performance for many years. However, the financial controller of the company recently advised the CEO to change to a new budgeting system which he believes can fairly report the performance of the operations. The budget and actual data are shown below. The company uses direct labour hours as the cost allocation base for both variable and fixed overhead. Standard cost per unit of output Direct materials Direct labour Variable Factory Overhead Fixed Factory Overhead 10 sq m @ $300 5 hours @ $60 Static budget data for last month: Direct labour Variable Overhead Fixed Overhead Actual data for last month: Output: Direct material purchased Direct material used Direct labour Variable Overhead Fixed Overhead Required: $3,000 $ 300 $ 250 $ 400 2,750 hours $137,500 $220,000 500 units Total cost 6,000 sq m @$290 $1,740,000 5,250 sq m 2,450 hours $151,900 $120,050 $213,350 1. Compute appropriate detailed variances for analyzing direct material, direct labour, variable overhead and fixed overhead. (12 marks) 2. Review the various variance analyses above and suggest ways in which management could improve its performance and the budgeting system. O D 1 Not syncing (8 marks) (Total: 20 marks) 4) C 1:10 PM 06-May-21 1