Dartford Enterprises Ltd manufactures just one product line of scientific calculators for engineers. The current standard cost of one unit of the product is as follows:

During last month, due to an unexpected fall in demand for the product, only 15,000 units were made and sold.
The actual results for last month were as follows:

Required

1. Prepare a static-budget-based variance analysis of last month’s performance.
2. Prepare a flexible-budget-based variance analysis of last month’s performance.
3. Which department manager(s) contributed the most to the success or failure of the budget during the  month? Explain your answer.

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Selling price Direct labor (15 minutes) Direct materials (2 meters) Contribution Fixed costs (based on the budgeted monthly output of 20,000 units) Operating income £2.30 £1.50 £10.50 £ 3.80 £ 6.70 £ 3.30 £ 3.40