You are an accountant for Bats R Us Pty Ltd. The company sells one type of cricket bat and has the following sales budget for that product in 2023. Additional Information: - It is estimated that the beginning inventory for Q1 (2023) will be 6,000 cricket bats. The inventory manager wants to ensure the ending inventory for each quarter is half the expected sales for the following quarter. Expected sales for Q1 (2024) are 14,500 cricket bats. - Each cricket bat requires 0.5 square metres (m2) of willow wood. The opening material inventory is 150m2 at $60 per m2. Claire wants the material inventory at the end of each quarter to increase to 450m2 at $60 per m2. The material cost is not expected to change in the next year. - Each cricket bat takes 1.25 hours to make. Labour cost per hour is $20 and is not expected to change during the year. Required: Prepare the following quarterly and total budgets for 2023 : a. Production budget (in units). [4 marks] b. Direct material budget (in dollars). [6 marks] c. Direct labour budget (in dollars). [4 marks] d. As part of the ongoing budgeting process, you have been regularly comparing the budgeted results to the actual results. During the second half of the year, you noticed an unfavourable direct material variance with the actual material cost per unit being 10% more than the budgeted amount. In addition to the unfavourable material price variance, you also identified favourable labour cost variance. Discuss one (1) possible cause for and one (1) example of a management decision that may be impacted by each of these variances