Required :

Calculate all the possible variances and prepare a Reconciliation statement to reconcile budgeted profit with actual profit at 550 units

David Cameroon Plc. produces a product called Snooper and uses absorption costing basis. The standard selling price and the production costs for Snooper are as follows: Rs Standard selling price per unit 86 Standard production costs: Direct material 1.5 kg at Rs 12 per kg 18 Direct labour 4.4 hours at Rs 7.5 per hour 33 Fixed production overheads 4.4 hours at Rs 5 per hour 22 Standard Profit per unit 13 The projected production and sales for March were 520 units. On 1 May the following Actual figures were available for April: Sales 550 units at Rs 85 each Production 550 units Direct Materials 785 kg at Rs12.40 per kg Direct Labour 2400 hours at Rs 7.80 per hour Fixed Production overheads Rs 12500