QUESTION 3. Okw. Plc make product Day. They planned to produce and sell 28,000 units of Day in November 2022. By the end of November, they had sold 30,000 units. The following information provides more information about their budgeted and actual performance for the month of November. Budget Actual '000 '000 Sales revenue 2050 2,045 Variable costs: Materials 800 803 Labour 613 620 Distribution 83 88 Total variable costs 1496 1511 Contribution 554 534 Fixed costs: Admin costs Rent N1510 41 49 100 90 2 Intermediate Management Accounting Total fixed costs Total costs Profit 141 139 1637 1650 413 395 a) Calculate all appropriate variances using flexible budgeting. [11 marks] b) Discuss the possible reasons for each variance calculated and how the adverse variances can be avoided. [9 marks]