The following are the budgeted and actual income statements for Borat Ltd, a manufacturing business, for the month of June:

flexed budget for the business for the month of June. The flexed budget reveals an operating profit of:

Budget Actual Output (production and sales) 2,000 units 1,800 units E E Sales revenue 300,000 295,000 Raw materials (90,000) (45,000 kilos) (85,000) (42,000 kilos) Labour (160,000) (10,000 hours) (176,000) (11,000 hours) Fixed overheads (35,000) (32,000) Operating profit 15,000 2,000