The business carried out some calculations on set up and the following information relating to their main product was produced: Sales Revenue Direct labour (1 hour) Direct materials (1kg) Fixed overheads Standard profit Direct labour (1075 hours) Direct materials (1175 kg) Fixed overheads 62 (22) (20) (6) (14) The budgeted output for last month was 1,000 units of this product. Actual output was 1,100 units which were sold for 69,900. The actual production costs were: 24,420 23,260 6,400 There were no inventories at the start or the end of the month. You are required to calculate the variances for the month from the available information, and use them to reconcile the budgeted and actual profit figures. You should produce a document that identifies and explains the variances and reconciles the actual and budgeted profit figures. You should identify further information required that would help to further explain variances.