Question 3: The following performance report for the year ended 31 March 2020 of Billy Building Company Limited was available Actual S000 Variance S000 Budget 5000 52,800 61,600 8,800 Sales Less: Cost of goods sold Direct materials Direct labour Production overheads - Fixed Production overheads - Variable Gross profit Selling overheads - Fixed Selling overheads - Variable Net profit (4.800) (2,400) (8,000) (9.600) 28,000 (6.000) (7.200) 14.800 (5,760) (3.000) (8,800) (12.000) 32,040 (5,600) (8.800) 17,640 (960) (600) (800) (2.400) 4,040 400 (1.600) 2.840 Other information: The above budget figures were based on budgeted output of 60,000 units, but the actual output was 80,000 units. Required: a Revise the performance report for Billy Building Company Limited for the year ended 31 March 2020 in a flexible budgeting format showing also whether each of the variances is F (Favourable) or A (Adverse). (15 Marks) b. The financial director has not discussed the proposed budgeting system with junior managers. He is considering imposing production and sales budgets upon them, without their involvement. Explain the following approaches to budget setting and give two advantages of each approach i. A "top-down" approach; ii. A"bottom-up" approach (5 Marks) Explain the following accounting terms: Current assets and non-current assets; ii. Current liabilities and non-current liabilities. (5 Marks) (Total: 25 Marks)