Table I: Budgeted and Actual costs along with performance analysis. Performance Report, May 2019 (F=Favorable U-Unfavorable) Actual Variance 14.000 Tk686,000 4.000 Tk178,000U TK 85,400 TK 22,600 F Budget Units 18,000 Sales Tk 864,000 Variable manufacta ring costs: TK 108,000 Direct material Direct labor 288.000 Indirect labor 57,600 Idle time 14,400 Cleanup time 10.800 Miscellaneous supplies 5.200 Total variable manufacturing TK 484,000 cost Variable shipping costs TK 28.800 Total variable costs TK512,800 Contribution margin TK351.200 Norrvariable manufacturin g costs: TK 57.600 Supervision Rent 20,000 Depreciation 60,000 Other 10.400 Total non-variable manufacturing costs TK 148.000 Selling and administrative costs 112.000 Total non-variable and TK 260.000 programmed costs Operating income (loss) 91.200 246,000 42.000 F 44,400 13,200 F 14.200 200 F 10,000 800 F 4.000 1.200 F TK404,000 TK 80,000 F TK 28.000 TK 800 F TK432.000 TK 80.800 F TK254,000 TK 97,200 U TK 58,800 TK 1,200 U 20.000 60,000 10,400 TK149.200 TK 1.200 U 112.000 TK261.200 TK 1.200 U (7.200) 98.400 U Case Brief This case study is based on a manufacturing company called FARR Ceramics, headquartered in Dhaka, its factory situated in Gazipur and is directly monitored by the Dhaka head office. The case focuses on a particular order for a certain special type of ceramic cup exported periodically and the issues revolving around delivering orders and keeping costs related issues at bay. Also, the case provides an opportunity to prepare budgets based on real-life cost figures and thereby appreciating the intricate details of Management Accounting. Assignment Questions 1. Use the budget data to calculate the per-unit fixed and variable cost allocated to production. What was the actual cost per unit of production and shipping? 2. Draft a flexible budget based on the data provided. 3. Prepare a flexible budget performance report. 4. The factory accountant's performance analysis report has been presented to Mr. Rahman. Using Table I, comment on the findings. Suggest areas of improvement before it is sent to the head office of FARR ceramics that the manager may like to Page 1 of 2