The following table shows the static budget and actual performance for White canary ltd.

Sales Volume	32,000	41,500
	Original	Actual
	BWP	BWP
Sales	416,000	535,980
Material Costs	112,000	144,255
Labour Costs	145,600	180,250
Factory Maintenance cost	62,500	61,300
Factory Power costs	31,750	42,560
Factory Rent	12,000	12,300
Gross profit	52,150	95,315
Admin and selling expenses	52,200	67,250
Net Profit	-50	28,065

Additional Information

• Material and labor costs are variable.
• Maintenance costs are stepped. Every mechanic is required per 30,950 units manufactured.
• Factory power costs have a fixed and variable element. The fixed costs were determined to be BWP1,350.
• Rent is a fixed cost.
• Admin and selling expenses have a variable cost of BWP1.60 per unit.

Required:

1. Prepare the companys flexible budget for the actual level of activity. Determine Favorable or Unfavorable Variances.
2. The following diagram shows information relating to Fandam Ltd for the month of April 2022

	Original Budget
		BWP
Sales	(75,000 units @ BWP53.00 /unit)	3,975,000
Direct labour	( 37,500 hours at BWP45.00 p/hr)	(1,687,500)
Direct material	(2.50 kg per unit at BWP6.00 p/kg)	(1,125,000)
Variable Overheads	( 37,500 hours at BWP5.50 p/hr)	(206,250)
Fixed production O/H	( 37,500 hours at BWP11.00 p/hr)	(412,500)
Total Cost		3,431,250
Closing inventory	(6500 units @BWP40.00)	(260,000)
Cost of sales		(3,171,250)
Gross Profit		803,750

Required:

1. Determine the Labor hours and cost required for 86 000 units

Calculate the quantity of direct materials required for 45000 units