Part A. Malcom Corporation recently prepared a manufacturing cost budget for an output of 100,000 units, as follows: Direct materials $110,000 Direct labour $ 60,000 Variable overhead Fixed overhead $ 85,000 $ 100,000 Actual units produced amounted to 120,000. Actual costs incurred were: direct materials, $120,000; direct labour, $70,000; variable overhead, $120,000; and fixed overhead, $95,000. If Malcom evaluated performance by the use of a flexible budget, calculate the total variance in the performance report. (3 marks) Part B. Explain why flexible budgeting is necessary (3 marks