Part 4 Flexible budget and variance (15 marks) The fixed budget and actual results for J Ltd for the latest period are as follows. Production and sales Budget 200 units ($) Actual 232 units ($) Direct material 36,000 43,680 Direct labour 42,000 50,640 Variable overhead 24,000 26,400 Fixed overhead 33,600 36,000 Total cost 135,600 156,720 Sales revenue 192,000 224,160 Profit 56,400 67,440 Required (1) Prepare a flexible budget control report for the period, identifying the cost and revenue variances. (10 marks) (2) Comment on this statement (5 marks): A budget is a forecast of an organisation's activities for the forthcoming period