The Gizmo Company Is located in a developing country, it makes and sells one cement-based product to the construction industry. For the financial year just ended, it budgeted to produce 1,000 units, selling them for $80,000. That production was budgeted to use 4,000 kg of materials, costing $12,000. Direct Labor was budgeted as being $15,000, based on 3,000 labour hours being worked. Variable production overheads were budgeted to be $8.000 and fixed production overheads as $24,000. Product ion overheads are charged in on the basis of machine hours, and each product unit uses four machine hours In addition to labour hours. Administration overheads were budgeted as being $4,000 in total The actual results for last year were: Required a) Prepare a schedule detailing for last year each of the original budget, flexed budget and actual results, showing sales $, all expenses $, and the profit $. b) Using the principles of Standard Cost Variance Analysis, calculate appropriately detailed variances for each of the five cost items, and for Sales, and prepare a statement reconciling the budgeted profit expected for last year and the actual profit achieved. c) Explain why within the application of standard costing, budgets are flexed