6. a) Discuss the elements of functional and master budgets. 30 Marks b) The budgeted and actual results of Crunch for September were as follows. The company uses a marginal costing system. There were no opening or closing inventories. Sales and production Sales Variable cost of sales Direct materials Direct labour Variable overhead Contribution Fixed costs Profit/(loss) Fixed budget 1,000 units Actual 700 units 40,000 28,400 16,000 10,400 8,000 6,200 4,000 3,000 28,000 19,600 12,000 4,400 5,000 5,400 7,000 (1,000) Required: Prepare a budget that will be useful for management control purposes. 70 Marks