Required:a. Calculate a statement of budgeted results and a flexed statement of budgeted results for June and compare these to actual results in a table. b. Calculate appropriate variances for Lily and summarise them in an operating statement reconciling the budgeted profit with actual profit. c. Give potential reasons for three of the variances you have calculated.

Benidorm plc manufactures one product and the following standard cost information relates to one unit of this product, based on budgeted production of 5,000 units for June: Direct materials 1kg Direct labour 2 hours Indirect {variable} overhead Total coat per unit Fixed overheads of 10,000 were budgeted and actual expenditure on xed overheads was 7,000. Actual production costs for the 4,800 units produced and sold in June were as follows: Direct materials 4,000 kgs 14,?00 Direct labour 0,?00 hours 33,30 ndirect {variable} overhead Total cost of production 203,00 The budgeted selling price for June was 20 and the actual selling price 16