Variance analysis and reconciliation of budgeted and actual profit. Bronte Ltd manufactures a single product, a lami- nated kitchen unit with a standard cost of 75 made up as follows:

Budgeted fixed overheads are 5000 per month. The standard selling price of the kitchen unit is 100. The monthly budget projects production and sales of 1000 units. Actual figures for the month of April are as follows: Sales 1400 units at 102 Production 1400 units Direct materials 22000 sq. metres at 4 per sq. metre Direct wages 6800 hours at 5 Variable overheads 11000 Fixed overheads 6000 You are required to reconcile actual and budgeted profit showing all the appropriate variances.

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() Direct materials (15 sq. metres at 3 per sq. metre) Direct labour (5 hours at 4 per hour) Variable overheads (5 hours at 2 per hour) 45 20 222 10 75