19. Peters & Co manufactures casings for toy drones. The standard cost of this product is as follows: Material X 8kg At $4/kg 32.00 Material Y 4kg At $7/kg 28.00 Labour 3 hours At $17/hour 51.00 Variable overheads 3 hours At $13/hour 39.00 Fixed overheads 12.50 Total Cost 162.50 Variable overheads are absorbed on a labour hour basis. The standard selling price is $199 and budgeted production and sales for April 2023 was 120,000 units. In this month, actual sales and production were 124,500 units and sales revenue totalled $23,779,500. Actual costs in the month were as follows: $ Material X 809,250 kg 3,358,388 Material Y 529,125 kg 3,677,419 Labour 423,300 hours 6,561,150 Variable overheads 5,756,880 Fixed overheads 1,560,000 Total Costs 20,913,837 Required: (a) (b) Produce a performance report reconciling the actual profit to the budgeted profit for the year, using the contribution approach. (14 marks) Write a brief report for the directors of the company to explain possible causes for each variance and drawing attention to any possible. interdependence between any of these variances. (6 marks) (Total 20 marks)