Question 3 [Flexible Budget] Makosah Limited deals in authentic African bitters. For the financial year 2019, the cost accountant provided the following budgeted information. At full capacity (100% level of activity), the company produces an output of 20,000 units. Level of Activity 70% 80% 90% 88900 101600 114300 224000 256000 288000 Direct Material (GHC) Direct labour (GHC) Production Overheads (GHC) Administrative Overheads (GHC) Depreciation (GHC) 152500 160000 167500 85000 85000 85000 20000 20000 20000 During June, the company's activity level was anticipated to be around 85% activity level Required: i. Prepare a flexible budget for the anticipated activity level. [13 marks] ii. Explain the relevance of an activity variance for expenses for management decision making purposes [2 marks] [Question 3 = 15 marks]