Practical Illustration on Standard Costing and Variance Analysis Prince Sultan manufactures a single product, a laminated kitchen unit with a standard cost of 110 made up as follows: The standard selling price of the kitchen unit is f130. The monthly budget projects production and sales of 1000 units. Actual figures for the month of April are as follows: Sales 1200 units at f132 Production 1400 units Direct materials 22,000 sq. metres at 4 per sq. metre Direct wages 6800 hours at f11 Variable overheads 11,000 Fixed overheads 6,000 The actual profit for the period is $600 Required: (a)Calculate the following variances Material price Material usage Labour rate Labour efficiency Fixed overhead expenditure Fixed overhead volume Fixed overhead capacity Variable overhead expenditure Variable overhead efficiency Sales margin price Sales margin volume (b) Using the above variances, reconcile the actual and budgeted profit