PART B (10%) Granger plc makes stoves. Details regarding unit standard costs and revenue are as follows: Sales price 600 Direct labour (10 hrs at 15 per hr) 150 Direct materials (60kg) 180 Fixed cost per unit 70 Standard profit 200 The budgeted output for March was 400 stoves; the actual output was 350 stoves, which was sold for 227,500. Total budgeted fixed overheads were 28,000. There were no inventories at the start or end of March, The actual production costs were: Direct labour (4000 hrs) 63,000 Direct materials (18,000 kgs) 72,000 Fixed Overheads 30,000 Required (a) Calculate the variances for March from the available information and use them to reconcile the budgeted and actual profit figures. Outline at least one reason for each variance calculated. (b) What is meant by a variance? (c) Most businesses that operate successful budgetary control systems tend to share some common features. Describe these features explaining their significance to effective budgetary control