business. Sales are increasing but profits are not. He is reviewing the business's budgets and looking to identify where problems exist. Sales revenue Direct labour Direct materials Fixed costs Budgeted figures Actual figures Variances 660 700 150 180 120 170 60 50 Profit Budgeted and actual figures for the year ending 31 December 2013 ($000) Budgeted figures ($000) Actual Variances figures ($000) Sales revenue 165 150 Cost of materials 80 70 Labour costs 22 23 Gross profit 63 57 Overheads 40 43 Net profit 23 14