Question: COMPREHENSIVE PROBLEM 11-1 [LO2- CC12, 13; L03 - CC15, 17, 18; L04 - CC22, 23]... ; COMPREHENSIVE PROBLEM 11-1 (LO2- CC12, 13; L03 - CC15, 17, 18; L04 - CC22, 23) Chennai Manufacturing Company (CMC) is a small manufacturer based in southern India. CMC's control- ler, Asha Pandey, recently implemented a standard costing system and has decided to use it as a planning and control tool. The following information is available for two of its products (A and B): Product Product B Standard Actual Standard Actual Direct materials: Kilograms/unit (SQD 12.00 12.80 90.00 84.00 Price/kilogram (SP) $38.50 $38.20 $4.60 $490 Direct labour Hours/unit (SOD) 0.022 0.018 0.440 0,470 Wage rate/hour (SR) $12.00 $11.80 S12.00 $13.40 Machine-hours/unit (SR) 0.80 0.85 2.40 2.40 Units budgeted to be produced 1.500,000 20,000 Units produced and sold 1,440.050 21.040 Selling price/unit S510.00 $459.00 Total overhead was budgeted at $4.618,000, 32.5% of which accounted for the fixed portion. Actual variable overhead incurred during the year amounted to $3,122,620, which accounted for exactly 70% of the total overhead incurred. The production system is highly machine intensive, and overhead was allocated accordingly. Standard: budgeted price is computed by adding a 12% markup to the standard product cost and then rounding it up to the nearest dollar. Assume that there were no changes in inventory levels for direct materials, WIP, and finished goods Required: (Hint: You may wish to combine Requirements (1) and (2) into a single report.) 1. Prepare a performance report that compares the actual results with the static budget. What is the static budget profit variance for the year? 2. Prepare a performance report that compares the actual results with the flexible budget for the year. 3. How much of the flexible budget profit variance is accounted for by the individual manufacturing variances? Show all the calculations, and Inbel each variance as favourable or unfavourable