Part A Flick plc manufactures a single product and the expected sales and production are 10,000 units for April 2020. It is expected that 2,000 kg of raw material will be required at a total cost of 20,000. Labour hours are expected to be 4,000 hours to produce 10,000 units. Production workers are paid 12.00 an hour. Expected fixed production overheads for the month are 10,000 and are absorbed on the basis of labour hours. The expected sales price is 10 per unit.

The actual results were

Number of units sold 9,000

Sales revenue 94,500

Materials 19,000

Labour 46,000

Fixed production overheads 11,000

Required a. Prepare a fixed, flexed and actual budget for April 2020, identify the variances and briefly comment on the variances.