Question 2 Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's operating budget for the month of September 20X2 included the following data for one Daily Planner: Selling price: 7.50 per unit Direct materials: Paper 125 pages @ 0.005 per page Plastic 0.075 kg @ 6 per kg Direct labour: Compilers 0.25 hours @ 8 per hour Finishers 0.15 hours @ 9 per hour Production and sales 5,000 units Fixed costs 2,000 The actual number of units produced and sold in September was 4,800 and the following actual cost data is available: Sales 35,760 Direct materials: Paper (125 pages per unit) (3,600) Plastic (0.09 kg per unit) (2,808) Direct labour Compilers (7.80 per hour) (7.488) Finishers (9.10 per hour) (5,897) Fixed costs (2.100) Net profit 13.867 The senior manager is happy that actual net profit is higher than budgeted net profit, but would like to understand the reasons behind this increase and has asked the manager of the Daily Planner department to explain her results. Requirements 2.1) Prepare a flexible budget for September 20X2 (no word count) (15 marks) 2.2) Prepare a reconciliation of budgeted profit and actual profit, calculating all relevant price, cost and efficiency variances (no word count) (20 marks) 23) Using your calculations from (2.2) identify and explain three actions that could be taken in order to further improve the performance of the Daily Planner department (maximum 300 words)