TOPIC 3rd For performance monitoring and evaluation purposes, PACK4-U's accountant prepared a budget for 5,000 units of one of the products produced by the company. Relevant information is given to you below:

Average variable cost per unit
Direct materials	15
Direct labor	24
Indirect materials	4,5
Indirect labor	7,5
Fixed general industrial costs	375000

The actual results of the period were as follows

Real production quantity	6000 units
Direct materials	85500
Direct labor	130750
Indirect materials	24200
Indirect labor	47750
Fixed general industrial costs	400000

REQUESTED 1. Compile the flexible budget, compare the actual production costs and calculate the deviations (unfavorable / favorable) 2. Explain the usefulness for a business of calculating and using discrepancies. (150 - 200 words) -> just write some points i will do the rest.