Question C1 (25 marks) Dexter Ltd produces and sells one (1) product. The budgeted standard costs of one (1) unit for the 2021 financial year are detailed in Table 1. Table 1 Direct Materials 5 metres at 3 per metre. Direct Labour 15 minutes at 25.00 wages for each hour. 5 Fixed Overheads The company's annual budget for 2021 forecast total annual sales of 500 units at a selling price of 110 for each unit. You have been tasked to complete the variances analysis report for 2021. You have retrieved the actual results for 2021 and these are detailed in Table 2 and Table 3. Table 2 59,400 Sales Revenue Direct Material Direct Labour 9,900 (3,300 metres) 210 hours Table 3 As a result of unexpected aggressive competition in 2021, the business reduced the unit price of all sales by 10%. In addition, the direct labour wage rate increased by 20%. The fixed costs for the first six (6) months of 2021 totalled 1,700, and for the final six (6) months totalled 1,900. There were no inventories at the start or end of the year. Required A) Prepare a statement flexing the budget based on the actual results for Dexter's production and sales for 2021. [5 marks] B) Using the data from your answer to Requirement A immediately above, calculate the following variances: Sales Price, Sales Volume, Material Price, Material Usage, Labour Rate, Labour Efficiency and Fixed Overhead Expenditure. [11 marks] C) Reconcile the budgeted profit for 2021 to the actual profit for 2021 using variances. [3 marks] D) Set out observations on all sales variances. In so doing, make reference to other variances if and where relevant. [6 marks]