TK Plc is company which exports most of its products to neighbouring countries . It has prepared the following fixed budget for the coming year.

TK Plc is company which exports most of its products to neighbouring countries . It has prepared the following fixed budget for the coming year.
Sales 10,000 units
Production 10,000 units
   $
Direct Materials   50,000
Direct Labour 25,000
Variable overheads 12,500
Fixed overheads    10,000
Total 97,500
Budgeted selling price $ 10 per unit
At the end of the year , the following costs had been incurred for the actual production of 12,000 units
$
Direct Materials 60,000
Direct Labour 28,500
Variable overheads 15,000
Fixed overheads 11,000
Total 114,500
The actual sales were 12,000 units at $ 126,000
Required
a) Prepare a flexed budget for the actual activity for the year
b) Calculate the variances between actual and flexed budget (Use marginal costing approach)
c) Explain the usefulness of a cash budget to an organisation
d) Explain four (4) ways in which TK Plc may protect itself against foreign currency risk