Prepare a marginal cost operating statement for the month of May, reconciling the budgeted contribution to the actual profit using as many variances as the data permit.

A company's budgeted production of Product Zinc for the month ending 30 November 2017 was 10,000 units. The fixed overheads were budgeted at Rs 3,200,000 The standard costs for the product are: Direct materials - 6 litres of material A at Rs 30 per litre Direct labour - 4 hours at Rs 50 per hour Variable overhead is absorbed at Rs 40 per labour hour The manufacturer operates a standard marginal costing system and the standard selling price is set based on a mark-up of 25%. The actual results for the month ended 30 November 2004 were: Production: 9,800 units Direct materials: 59,700 litres at a total cost of Rs 1,761,150 Direct labour: 39,500 hours at a total cost of Rs 1,920,800 Variable overheads incurred: Rs 1,542,000 Fixed overheads incurred: Rs 3,120,000 During the month of November 2017, the company managed to sell all the quantity produced by offering a 3% discount on the standard selling price