All kiwi ltd. (a new zealand-based company) has a wholly-owned subsidiary in malaysia whose manager is being evaluated on the basis of the variance between actual profit and budgeted profit in new zealand dollars (nzd). relevant information in malaysian ringgit (myr) for the current year is as follows: budgetactualrevenuesmyr 12,000,000mr 11,000,000expenses9,000,0009,000,00 0current year actual and projected exchange rates between the nzd and the myr are as follows: actual at time of budget preparationnzd 0.312 per myr 1projected ending at time preparation of budgetnzd 0.340 per myr 1actual at tned of budget periodnzd 0.357 per myr 1
required: a. calculate the total budget variance for the current year using each of the five combinations of exchange rates for translating budgeted and actual results shown in exhibit 10.10.b. make a recommendation to all kiwiâs corporate management as to which combination in item (a) should be used, assuming that the manager of the malaysian subsidiary does not have the authority to hedge against changes in exchange rates. c. make a recommendation to all kiwiâs corporate management as to which combination in item (a) should be used, assuming that the manager of the malaysian subsidiary has the authority to hedge against unexpected changes in exchange rates.