5 [Total: 20] BCJ Distributors manufactures and sells a single product. The company operates a standard absorption costing system and absorbs overheads on the basis of direct labour hours. The standard selling price and standard costs for one unit of the product are as follows: Selling price Direct material per unit (R) 310 15 metres @R10 per metre 150 5 hours @ R12 per hour 60 Variable production overheads Fixed production overheads 4 hours @R6 per hour 4 hours @ R3 per hour 24 12 Direct labour The budgeted production and sales for July were 1 000 units. The fixed overhead absorption rate has been calculated based on budgeted production for the month. Actual results for July were as follows: Production Sales Selling price Direct materials Direct labour Variable production overheads Fixed production overheads 1 400 units 1 200 units R316 per unit 22 000 metres @R12 per metre 6 800 hours @ R 15 per hour R33 000 R18 000 No materials inventories are held. Required: Prepare a statement for the budgeted gross profit with the actual gross profit for July. Your statement should show the following: Sales volume profit variance, Sales price variance, Direct material price variance, Direct material usage variance, Direct labour rate variance, Direct labour efficiency variance, Variable overhead expenditure variance, Variable overhead efficiency variance, Fixed overhead expenditure variance, Fixed overhead volume variance, Actual gross profit/loss