Part 1 Company projects the sale of 20 000 units for the next month. The expected selling price is 60 EUR per unit. The required beginning and the end inventory data are as follows: Beginning inventory 3 000 units Targeted end inventory 7 000 units Each unit requires 4 kg of material which costs 10 EUR per kg. The beginning inventory of raw material is 15 000 kg. The company wants to have 20 000 kg of material in stock at the end of the month. Direct labour costs follow the wage rate 10 EUR per hour and standard production time 30 minutes per piece Batch-related activities (as logistics) demands for costs of 500 EUR per one batch. Standard volume in one batch is 1000 units, Fixed overhead costs budget is 120 000 EUR. Questions and tasks: 1) Prepare sales plan, production plan and purchasing plan 2) Prepare budgeted income statement. Use variable costing for inventory valuation (inclusive batch-related costs). Consider the same standard variable costs per unit in previous period as in upcoming period. Part 2 Actual data for concerned period were as follows: Production volume Sales volume Sales Revenues Direct material costs (for production volume) Direct labour costs (for production volume) Costs of batch-related activities Fixed overhead costs 25 000 units 22 000 units 1 265 000 EUR 975 000 EUR 135 000 EUR 14 000 EUR 128 000 EUR Questions and tasks: 1) Make variance analysis. 2) Quantify actual profit considering standard variable costing for inventory valuation