Windy Ltd manufactures shoes in its UK-based manufacturing plant. The company achieved the following results during 2017: - Actual sales revenue was 121,500.25% fewer units than budgeted were sold. - Actual cost of materials was 72,900. The cost per kg of materials dropped by 10% of the budgeted price. - Labour worked 7,800 hours at a cost of 3 per hour. - Variable overheads cost 2 per labour hour. - Fixed overheads were lower than budgeted by 40%. The budget for 2017 was as follows: Requirement a) Reconcile the budgeted profit and the actual profit/oss for 2017, showing all appropriate variances. 12 Marks b) Discuss the extent to which the tightness of standards or budgets (i.e. the level of difficulty incorporated) can impact on their effectiveness with respect to control