A company produces Widgets and Splodgets which are fairly standardised products. The following information relates to period 1.

The standard selling price of Widgets is $50 each and Splodgets $100 each. In period 1, there was a special promotion on Splodgets with a 5% discount being offered. All units produced are sold and no inventory is held.

To produce a Widget they use 5 kg of X and in period 1, their plans were based on a cost of X of $3 per kg. Due to market movements the actual price changed and if they had purchased efficiently the cost would have been $4.50 per kg. Production of Widgets was 2,000 units.

A Splodget uses raw material Z but again the price of this can change rapidly. It was thought that Z would cost $30 per tonne but in fact they only paid $25 per tonne and if they had purchased correctly the cost would have been less as it was freely available at only $23 per tonne. It usually takes 1.5 tonnes of Z to produce 1 Splodget and 500 Splodgets are usually produced.

Each Widget takes 3 hours to produce and each Splodget 2 hours. Labour is paid $5 per hour. At the start of period 1, management negotiated a job security package with the workforce in exchange for a promised 5% increase in efficiency - that is, that the workers would increase output per hour by 5%.

Fixed overheads are usually $12,000 every period and variable overheads are $3 per labour hour.

Required

Produce the original budget and a revised budget allowing for controllable factors in a suitable format.