Problem #07 Mr. Sharp, the Finance Manager of Bright Limited tabled the following statements for the consideration of the Director Finance Mr. F for the first quarter of the year. Tk. 7,20,000.00 INCOME STATEMENT Sales revenue (18,000 units) Less Cost of Goods Sold Direct Materials Direct Laboure Other direct Expenses Factory Over Head Administrative and selling Expenses Tk. 4,32,800.00 Tk. 1,16,600.00 Tk. 30,400.00 Tk. 44,000.00 Tk. 32,000.00 Tk. 6,55,800.00 Net Profit: Tk. 64,200.00 Budgeted Unit Selling Price: Tk. 38.00, Budgeted Units : 20,000 STATEMENT OF STANDARD COST & ACTUAL COST STANDARD Elements of Cost Input Rate Total Cost Direct Materials 54,000 7.50 4,05,000.00 Direct Labour 54,000 2.00 1,08,000.00 Other Direct Expenses 18,000 1.50 27,000.00 Factory Expenses Fixed Expenses 54.000 0.50 27,000.00 Variable Expenses 54,000 0.33 18,000.00 Administrative exp. 18,000 1.50 27,000.00 Input 54,100 53,000 N.A ACTUAL Rate Total cost 8.00 4,32,800.00 2.20 1,16,600.00 NA 30,400.00 53,000 Not required 28,000.00 53,000 Not required 16,000.00 18,000 Not required 32,000.00 STATEMENT OF VARIENCES Material Price Variance = 27,050.00(A), Material Usage variance = 750.00(A) Labour Rate Variance =10,600(A), Labour Efficiency variance =2,000.00(F) Direct Expenses Variance = 3,400.00( A), Fixed Overhead Spending Variance = 2,000.00(F), Fixed Overhead Efficiency variance = 500.00(F), Capacity Variance =3,500.00(A), Variable Overhead Spending Variance =1,667.67, (F), Variable Overhead Efficiency Variance = 333.33(F), Administrative Overhead Spending Variance = 2,000.00(A), Capacity Variance =3,000.00(A),Sales Price Variance= 36,000.00(F), Sales Volume Variance = 76,000.00(A), From the above statements, please prepare a Reconciliation Statement profit variances with necessary details with interpretation