A manufacturer produces a single product

Brand $x,$ which has the following standard data:

Per unit

of Brand $x$

$$

Direct material $2$ units at $10$

per unit

Direct wages $5$ hours at $10$

per hour

Selling price

$500$ units of Erand $x$ are budgeted to be

produced and sold for each of the $13$ reporting

periods in the year. Administrative fixed costs of

$2000$ per period are also budgeted.

In the fourth reporting period the actual data

was as follows:

There are no opening or closing stocks of

materials, and no opening stocks of finished

goods. Stocks are valued at standard cost.

Although $2000$ labour hours were paid for.

this includes $100$ hours of idle$-$time caused by

machine breakdown.

Required:

$($i$)$ Calculate the actual profit for Period $4.$

$($ii$)$ Calculate the relevant variances for

materials and labour.

$($iii$)$ Prepare a statement which reconciles

the actual profit with the profit budgeted

for in Period $4.$

$(6$ marks$)$