Belfast Industries manufactures a single product, the standard cost of which is: Direct materials - 6 kgs @ 4 kg Direct labour - 2 hour @ 8 hour Variable overhead - 2 hour @ 6 hr Fixed overhead - 2 hour @ 10 hr Total per unit 24.00 16.00 12.00 20.00 72.00 Other data relating to the standard cost: The fixed overhead rate is based on a budgeted output of 4,000 units per month The standard selling price is 110 per unit. Actual information for the latest month is as follows: 4.000 units 4,000 units 440,000 Production Sales Sales revenue Direct materials: Purchases 30,400 kgs Used 22,000 kgs Labour - 7,600 hours Variable overheads Fixed overheads 127,680 63.080 53.680 87.000 Other data relating to the actual results: There was no opening stock of raw material. . All variances are written off to cost of goods sold in the period and stocks are valued at standard cost. Requirement (a) (b) Calculate the actual profit for the latest month and reconcile it with the budgeted profit, showing all relevant variances. 18 Marks For the labour variances calculated, write a brief explanatory note of what information this communicates to management. As part of the note, define interdependence with respect to variances and comment on possible interdependencies that may exist in the case of the labour variances