Section C (45 marks) Question 1 Bowland plc makes a key component (AX3) of Personal Protective Equipment (PPE), which is supplied to hospitals throughout the country. The standard costs for AX3 are given below. Standard Cost Selling price Direct labour (2 hours) Direct material (3 kg) Fixed overhead (based on budgeted output of 800 units a month) Standard profit f 110.00 10.50 42.00 27.00 30.50 The actual output for the month of June was 850 units. Actual production costs, to the nearest , are given below. Sales Direct labour (1780 hours) Direct materials (2410 kg) Fixed overheads Operating profit 92,930 (9,665) (33,258) (21,365) 28,642 There were no inventories at the start of the end of June. Required Showing all workings, which should be rounded to the nearest :- a) Flex the budget, ensuring that you show quantities and costs in . (7 marks) b) Calculate the following variances: sales volume, sales price, labour efficiency, labour rate, material usage, material price and fixed overhead. (14 marks) c) Reconcile the budgeted profit to the actual profit achieved. (4 marks) (Total: 25 marks)