j66 5 P.20.5 ABC Ltd follows standard costing system. The standard output for a period is 20,000 units and the standard cost and profit per unit are as under: Direct material (3 units @ 15) 345 Direct labour, unskilled (3 hours @ +10) 30 Direct expenses Factory overheads: Variable 2.5 Fixed 3.0 Administrative overheads 3.0 Total cost 88.50 Profit 11.50 Selling price (fixed by the Government) 100.00 The actual production and sales for a period was 14,400 units. There has been no price revision by the government during the period. The following are the variances worked out at the end of the period: Favourable Adverse Direct material: Price +42,500 Usage 310,500 Direct labour: Rate 40,000 Efficiency 32,000 Factory overheads: Variable expenditure 4,000 Fixed expenditure 4,000 Fixed volume 16,800 Administrative overheads: Expenditure 4,000 Volume 16,800 You are required to: (1) Ascertain the details of actual costs and prepare a profit and loss statement for the period showing the actual profit/loss (show workings clearly), (it) Reconcile the actual profit with the standard profit