Orpen Ltd had budgeted to make a profit of $72,500 for the year ended 31 December 2014. However, actual profit was less than expected and an investigation has shown the following variances occurred. 

Prepare a statement reconciling the budgeted profit with the actual profit for the year ended 31 December 2014.

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Variance 2$ Direct labour efficiency 450 favourable Direct labour rate 220 adverse Direct materials price 990 adverse Direct materials usage 140 favourable Fixed overhead 3 600 adverse