a. Produce a report that compares the original budget with actual costs for materials and labour in

Question:

a. Produce a report that compares the original budget with actual costs for materials and labour in July.
b. Produce a budget versus actual variance report using a flexible budget and calculate the variances on that basis.
c. Calculate both usage and price variances for each of materials and labour.
d. Explain why variance analysis using a flexible budget may be helpful for management control.