Using direct labour hours as a basis to allocate fixed production overreads, calculate: o Fixed Production Overheads absorption rate o Product cost per unit o Prepare a production budget in $ Explain the nature and purpose for each step of the budget preparations. Prepare a Budgeted Income Statement in form of absorption costing (by quarter). Suppose the company cannot identify the price of sale units. It just estimated the price among 190; 200; 230; 250 and 280 $/unit. a) Calculate the gross profit for each price level? b) And explain the benefit by using flexible - budgeting method (price changing)? Prepare the cash budget for year 2017 (by quarter) Actually, in 2017, the Magna Company sold 330,000 units (as budgeted). Variance (adverse) Variance (favourable) Direct material usage A Direct material price B Direct Labour efficiency C Direct Labour rate D Fixed overhead expenditure F Fixed overhead capacity F Fixed overhead efficiency G hey are favourable or adverse and their possible causes (raise at least 2 causes)