The Wee Lee Cycle Company planned to produce 120,000 bicycles a year (10,000 a month) at a total cost of £80 each, and to sell them for £100 each.

Last month it produced 11,000 bicycles at a total cost of £902,000, and sold them for £979,000.

a Calculate the budgeted profit for the month.

b Calculate the actual profit for the month.

c Calculate sales margin and cost variances in as much detail as the information permits.

d Evaluate the information disclosed.