a ) Prepare the first quarter variance analysis report showing the static budget, flexible budget and flexible budget variances. B) Discuss the use of the following as aids to each of planning and control:

i) rolling budgets

ii) flexible budgets

iii)planning and operational variances

O'Hara Ltd makes and sells a single product. Annual sales in units for 2012 are expected to be 210,000, and standard cost and selling price per unit is: 30 Selling price Variable costs: Materials Labour Overheads N 00 00 Annual fixed overheads for 2012 are budgeted at: Manufacturing: 528,000 Non-manufacturing 336,000 Actual production and sales for the month of January was 48,000 units. The actual revenue and expenditure for the month of January 2012 was as follows: Sales revenue 1,506,000 Expenditure: Materials Labour Variable overhead Fixed overheads Manufacturing Non-manufacturing 355,500 376,500 97,200 120,000 105,000 O'Hara PLC divides the annual budget by 4 in order to produce quarterly variance analysis reports