1. Bug Ltd manufactures one uniform product. Activity levels in the assembly department are an average level of activity of 20,000 units production per four-week period. The actual results for four weeks in October are:

Budget 20,000 units Actual 17,600 units

$ $

Direct labour 20,000 19,540

Direct expenses 800 1,000

Direct material 4,200 3,660

Depreciation 10,000 10,000

Semi-variable overheads 5,000 4,760

40,000 38,960

Assume that at a level of production of 15,000 units, semi-variable overheads are forecast to be $4,500.

Produce a budgetary control statement showing the actual costs, flexed costs and variances produced.