Yuri, a cutlery manufacturer, produces spoons. The market in which the business operates is highly competitive, as there is a shortage of steel of adequate quality. There is a good availability of labour, but not of those who are experienced in cutlery manufacture. The budgeted and actual figures for the previous period are represented in the tables below Budget Actual Variance Units sold 100,000 75,000 (25,000) Materials £ 15,000 22,500 (7,500) Direct labour £ 22,500 24,375 (1,875) Material (£) Labour (£) Price/rate variance (4,500) 3,750 Usage/efficiency variance (3,000) (5,625) Total variance (7,500) (1,875) Required: AC3.3 Define budgetary control, explain budgetary circle and discuss the process and purpose of budgetary control(with Diagram) AC3.4 analyse 5 variances from budgeted and actual figures, offering suggestions for appropriate future management action