10. Budget Variance Analysis

Analyze the budget performance of DEF Company for the first quarter of 2023. The budgeted and actual figures are as follows:

Particulars	Budgeted (in $)	Actual (in $)
Sales Revenue	500,000	480,000
Cost of Goods Sold	300,000	320,000
Operating Expenses	150,000	140,000
Interest Expense	10,000	12,000
Net Profit	40,000	8,000

Requirements:

1. Calculate the variance for each line item.
2. Determine the percentage variance for each line item.
3. Analyze the reasons for variances in Sales Revenue and Cost of Goods Sold.
4. Assess the impact of variances on Net Profit.
5. Provide recommendations to management for improving budget accuracy.