Illustration 2 As the management accountant of T Plc, the following information is presented in the table below for the month of April. Sales and production volume Selling price per unit Direct materials: Kgs (total) Price per kg Direct labour (per unit): Fixed overhead: Hours per unit Rate per hour Production (total) Administration (total) Actual 4,900 units N11.00 10,600 NO.60 0.55 3.80 N10,300 3,100 Budget 5,000 units N10.00 10,000 NO.50 Required: Prepare the operating statement showing the budgeted profit Prepare the operating statement showing actual profit Compute all relevant variances Prepare a statement reconciling the budgeted profit to the actual profit. 0.50 N4.00 N10,000 #3,000

Illustration 2 As the management accountant of T Plc, the following information is presented in the table below for the month of April. Required: - Prepare the operating statement showing the budgeted profit - Prepare the operating statement showing actual profit - Compute all relevant variances - Prepare a statement reconciling the budgeted profit to the actual profit