QUESTION 1 Manchacha Municipal Council uses feed forward control ( flexible Budget approach) to evaluate its performance at 6the end of each financial year. The Following details are estimated figures (fixed budget) for forth coming year: Production and Sales in units - 200000 units (90% ) K000 Costs: Sales Revenue Direct Material A 660000 90000 Direct Material B Direct Labor 80000 60000 Direct Expenses 70000 Production overheads (hybrid, 60% variable,, rest Fixed) 50000 Depreciation (fixed) 10000 Rent (fixed) 20000 Management Salaries (fixed) 110000 Outsourcing expenses (fixed) 40000 Other overheads (fixed) 30000 REQUIRED (a) Prepare flexed Budgets at 60%, 70%, 80%, 100%, 110% and 120% activity levels marks ( 15 (b) Calculate the profit/ (Loss) for 5the fixed Budget and Flexible Budgets (5 marks) (Total = 20 marks)