Weasley Limited, a trading company makes wands for which the standard costs for one wand are shown below: Sales Price Direct labour (2 hours at 8 per hour) Direct materials (50 cms of wood at 10 per metre) Fixed Overhead Standard Profit 31 16 5 7 The budgeted output for September was 1,000 wands the actual output was 1,100 wands which sold for 38,500. No stocks were left at the end of the month. The actual total profit for the month was 10,530. The actual production costs were: Direct Labour (1,760 hours) 15,100 Direct Materials (825 metres) 9,900 Fixed Overheads 2,970 Required: a) Calculate the following variances for September: Sales volume variance (2 marks) Sales price variance (2 marks) Material price variance (1 % marks) Material usage variance (2 marks) Labour rate variance (1 % marks) Labour efficiency variance (2 marks) Fixed overhead variances (1 mark) (12 marks] b) Prepare a statement summarising the variances for the month of September and reconcile the budgeted profit for the month to the actual profit for the month. [8 marks) c) Discuss the uses of budgets and indicate what needs to be in place for them to work effectively