SILVER Sdn. Bhd. manufactures a single product, i3. The activity levels in the Assembly department vary every month. The company has prepared two provisional budgets for the quarter ended 31" March 2021. These two budgets are shown below: Provisional budgets for the quarter ended 31 March 2021: Activity level (units) Materials Labour Power and maintenance Depreciation and other fixed overheads Total cost 6,000 RM 69,000 38,000 16,200 35.000 158,200 7,500 RM 86,250 42.500 18,000 35,000 181.750 After the preparation of the above two budgets, further forecasts have indicated that an activity level of 6,000 units is likely to be achieved in the next quarter. Actual results for the quarter ended 31" March 2021: Activity level Materials Direct and indirect labour Power and maintenance Depreciation and other fixed overheads Total cost 5.900 RM 68,000 36,000 16,200 35.000 155.2008 Question 3 (Continued) Required: (a) Using the two provisional budgets provided, analyse the cost behaviour of all the costs items shown above into variable costs, fixed costs and semi-variable costs. (2 marks) (b) Calculate the following costs: (i) Variable cost per unit: (3 marks) (ii) Fixed cost per quarter. (3 marks) (c) (d) Prepare a variance analysis for the quarter ended 31" March 2021 using the flexible budgeting method. (7 marks) Explain ONE (1) possible cause for each variance identified at part (e) above. (8 marks) Explain ONE (1) situation in which the incremental budget is suitable for use in a local telecommunication company. (2 marks) [Total: 25 marks] (e)