Actual Results for June Revenue Actual number of tests performed: 22 tests which were priced at 9,900 each. Costs incurred: Materials Owing to the efficiency of operating staff, Autotechs wasted less material and only used 0.09 litres per procedure. This meant they only used 1.98 litres in total during June. There was an unexpected rise in material prices, so the procurement team actually spent 21,780 on materials (11,000 per litre). Labour fees The team worked a total of 47 hours and were paid a total of 75,400. Overheads Actual variable overheads cost in total 48,000 (1,021.28 per hour). Actual fixed overheads were 46,000. Required: (a) b) (c) Prepare a flexed budget showing the profit based on the actual level of activity (22 tests). (8 marks) Calculate the actual profit made in June. (3 marks) Prepare a statement that reconciles the original budgeted profit for June with the actual profit for June. Your statement should show the variances in as much detail as possible. (21 marks) (d) Discuss who should be rewarded/held responsible for any four variances that you calculated for the reconciliation in c) above. (8 marks) Total 40 marks Actual Results for June Revenue Actual number of tests performed: 22 tests which were priced at 9,900 each. Costs incurred: Materials Owing to the efficiency of operating staff, Autotechs wasted less material and only used 0.09 litres per procedure. This meant they only used 1.98 litres in total during June. There was an unexpected rise in material prices, so the procurement team actually spent 21,780 on materials (11,000 per litre). Labour fees The team worked a total of 47 hours and were paid a total of 75,400. Overheads Actual variable overheads cost in total 48,000 (1,021.28 per hour). Actual fixed overheads were 46,000. Required: (a) b) (c) Prepare a flexed budget showing the profit based on the actual level of activity (22 tests). (8 marks) Calculate the actual profit made in June. (3 marks) Prepare a statement that reconciles the original budgeted profit for June with the actual profit for June. Your statement should show the variances in as much detail as possible. (21 marks) (d) Discuss who should be rewarded/held responsible for any four variances that you calculated for the reconciliation in c) above. (8 marks) Total 40 marks