Standard costs for X Limited along with actual data for the last period is given below. Standard costs and revenues (per unit of product Alpha): Direct Materials: Rs. 4 kg of X at Rs. 20 per kg 80 2 kg of Y at Rs. 30 per kg 60 Direct Labour: 6 hours at Rs. 18 per hour 108 Variable Overheads: 6 direct labour hours at Rs. 4 per hour 24 Standard contribution margin 80 Standard Selling Price 352 Budgeted fixed overheads for the period are Rs.480,000. Actual results are as under. 18,000 units were produced and sold during the period. Rs. Rs. Sales 6,480,000 Direct Materials: X: 76,000 kg at Rs. 22 per kg 1,672,000 Y: 40,400 kg at Rs. 28 per kg 1,131,200 Direct Labour: - 114,000 hours at Rs. 19.2 per hour 2,188,800 Variable Overheads: 416,000 5,408,000 Contribution margin 1,072,000 Fixed Overheads: 464,000 Profit 608,000 Required: a) Prepare a budget for an activity level (sale and production) of 20,000 units. b) Based on variable costing method, calculate all the variances, that you consider important to assess the performance of the company. c) Give the probable reasons to each variance. Also point out the manager/department responsible for the occurrence of that variance.