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Divad A/S is a medium-sized production company that manufactures a single product, L44, which is sold to public organizations in Western Europe and Turkey. Divad A/S uses standard accounts for e.g. cost control and valuation of inventories using FIFO. The cost accounts at Divad A/S operate with two types of direct costs; direct materials and direct production wages. Indirect production costs (both variable and fixed) are allocated to products on the basis of the standard consumption of direct wage hours in production. There are the following standards per. Unit of L44, fixed at start of 2019 and valid for the year 2019: Direct salary; 22 hours at DKK 250.00. Direct materials: 260 kg at 25.00 DKK. Indirect costs are allocated to product as follows: Variable indirect production costs; DKK 50.00 pr. Direct hourly wage, fixed indirect production costs; 75.00 DKK pr. Direct pay hour. Direct pay hours were budgeted at 10,000 hours per month, which is also used as a basis for the distribution of indirect production costs. In October 2019, Divad A/S produced 500 units of L44. Question 2.1 Calculate the total standard manufacturing costs for the production of L44 in October 2019 (both per unit and total). The following records were found in the October accounts: Purchase and consumption of direct material: 127,000 kg at DKK 26.25 per kg. - Direct labor costs in production: 10,800 hours at DKK 236.00 per hour. Realized fixed and variable indirect production costs: DKK 1,390,000.00 (of which variable indirect production costs amounted to DKK 502,500.00). At the start of the month, there was a finished goods inventory of 80 units of L44 - these were produced in September. 550 units were sold in October for a total price of DKK 11,000,000. The budgeted sales price was DKK 20,000 per unit. Question 2.2 Briefly explain the concept of flexible budget and set up a flexible budget for Divad A/S for the specific period, incl. calculation of production costs and expected result according to the flexible budget Question 2.3 Briefly explain the principle in deviation analyzes and how Divad A/S can benefit from such analyzes. Question 2.4 Carry out a detailed deviation analysis on the direct cost types and briefly comment on the results. Question 2.5 Carry out a detailed deviation analysis of the indirect production costs and briefly comment on the results. Question 2.6 Prepare a simple income statement for the period (prepare an income statement for the period). When calculating the result for the period, disregard costs other than production costs (for example, disregard period costs). Divad A/S is a medium-sized production company that manufactures a single product, L44, which is sold to public organizations in Western Europe and Turkey. Divad A/S uses standard accounts for e.g. cost control and valuation of inventories using FIFO. The cost accounts at Divad A/S operate with two types of direct costs; direct materials and direct production wages. Indirect production costs (both variable and fixed) are allocated to products on the basis of the standard consumption of direct wage hours in production. There are the following standards per. Unit of L44, fixed at start of 2019 and valid for the year 2019: Direct salary; 22 hours at DKK 250.00. Direct materials: 260 kg at 25.00 DKK. Indirect costs are allocated to product as follows: Variable indirect production costs; DKK 50.00 pr. Direct hourly wage, fixed indirect production costs; 75.00 DKK pr. Direct pay hour. Direct pay hours were budgeted at 10,000 hours per month, which is also used as a basis for the distribution of indirect production costs. In October 2019, Divad A/S produced 500 units of L44. Question 2.1 Calculate the total standard manufacturing costs for the production of L44 in October 2019 (both per unit and total). The following records were found in the October accounts: Purchase and consumption of direct material: 127,000 kg at DKK 26.25 per kg. - Direct labor costs in production: 10,800 hours at DKK 236.00 per hour. Realized fixed and variable indirect production costs: DKK 1,390,000.00 (of which variable indirect production costs amounted to DKK 502,500.00). At the start of the month, there was a finished goods inventory of 80 units of L44 - these were produced in September. 550 units were sold in October for a total price of DKK 11,000,000. The budgeted sales price was DKK 20,000 per unit. Question 2.2 Briefly explain the concept of flexible budget and set up a flexible budget for Divad A/S for the specific period, incl. calculation of production costs and expected result according to the flexible budget Question 2.3 Briefly explain the principle in deviation analyzes and how Divad A/S can benefit from such analyzes. Question 2.4 Carry out a detailed deviation analysis on the direct cost types and briefly comment on the results. Question 2.5 Carry out a detailed deviation analysis of the indirect production costs and briefly comment on the results. Question 2.6 Prepare a simple income statement for the period (prepare an income statement for the period). When calculating the result for the period, disregard costs other than production costs (for example, disregard period costs)