Britter Ltd produces garden chairs. The budgeted output and sales for January 2018 was 5,000 chairs.

The standard cost is:

Wood 30 sq metres at 4 per sq metre 120.00

Labour 7 hours at 9 per hour 63.00

Variable overheads 7 hours at 5 per hour 35.00

Fixed overheads 7 hours at 10 per hour 70.00

Total production cost 288.00

Standard profit 32.00

Standard selling price 320.00

The actual results were:

Wood 170,000 sq metres at 3.50 per sq metre

Labour 40,000 hours at 10 per hour

Variable overheads 174,000

Fixed overheads 370,000

Sales revenue 1,606,500 (Budget reconciliation actual should equal to this)

Actual production was 5,500 chairs and sales were 5,100 chairs

QUESTION

Prepare a budgeted reconciliation statement for January 2018, which will show the actual profit for the month

My calculation

sales volume variance (AV-BV)SM

(5100-5000)*32=3200F

sales price variance (AM-SM)AV

(27-32)*5100=25,500A

direct material price variance (SP-AP)*AQ

(4-3.5)*170,000=85,000F

direct material quantity variance (SQ-AQ)*SP

(153,000-170,000)*4=68,000A

direct labour rate variance (SR-AR)*AH

(9-10)*40,000=40,000A

direct labour efficiency variance (SH-AH)SR

(35,700-40,000)*9=38,700A

variable o/h expenditure variance BFVO-AVO

200,000-174,000=26,000F

variable o/h efficiency variance (SH-AH)*SR

(35,700-40,000)*5=21,500A

fixed o/h expenditure variance BFO-AVO

350,000-370,000=20,000A

fixed o/h volume variance method 1 (BP-AP)*SR

(5000-5500)*70=35,000F

fixed o/h volume efficiency variance method 2 (SH-AH)*SR

(38,500-40,000)*10=15,000A

fixed o/h volume capacity variance method 2 (BH-AH)*SR

(35,000-40,000)*10=50,00A

budgeted reconciliation statement

BUDGET PROFIT 1,600,000

+ SALE VOLUME VARIANCE 3,200

= FLEXED BUDGET PROFIT 1,603,200

- SALE PRICE VARIANCE <25,500>

= 1,577,700

PRODUCTION VARIANCE

ADV FAV

MATERIAL PRICE 85,0000

USAGE 68,000

LABOUR RATE 40,000

EFFICIENCY 38,700

VAR O/H EXPENDITURE 26,000

EFFICIENCY 21,500

FIXED O/H EXPENDITURE 20,000

VOL-EFFICIENCY 15,000

VOL-CAPACITY 50,000

TOTAL (253,200) 111,000 = (142,200)

ACTUAL PROFIT 1,435,500 (BUT THIS IS WRONG IN THE QUESTION ACTUAL PROFIT WAS 1,606,500. CAN SOMEONE TELL ME WHERE I WENT WRONG IN MY CALCULATION PLEASE)