SESTA a. Explain the concept of budget variance and volume variance with example. b. Lee Company is now producing the heavy-duty gear shifters used in its most popular line of mountain bikes. The company's Accounting Department reports the following costs of producing 7,500 units of the shifter internally each year: See is Per Unit 7500 Units Direct materials Direct Labor Variable Overhead Supervisors Salary Depreciation of Special Equipment Allocated general overhead Total Cost 1 4.5 2 5 22.5 45000 30000 7500 33750 15000 37500 168750 An outside supplier has offered to sell 7,500 shifters a year to Lee Company at a price of only $17 each. Should the company stop producing the shifters internally and buy them from the outside supplier? But what if the space now being used to produce shifters could be used for some other purpose? Assume that the space now being used to produce shifters could be used to produce a new cross-country bike that would generate a segment margin of $50,000 per year