vorced 54 Padan. 30. Reconciliation - Difference between Normal & Budgeted Capacity - Absorption Costing Approach N 94 The standard cost sheet of Primers Ltd based on the normal output of 30,000 units for a quarter is as under - Direct Materials 4 kg at 2 per kg Direct Wages 6 hours at 4 per hour 24 Overheads 50% of Direct Wages 12 Standard Profit 6 Selling Price 50 The Budgeted Fixed OH is 2 1,44,000 per quarter and it is included in the Overhead Costs given above. On the basis of the budgeted activity of 36,000 units, the Company estimated its Q-2 profit as under- Direct Materials 2,88,000 Direct Wages 8,64,000 Overheads 4,32,000 Total Costs 15,84,000 Profit balancing figure) 216,000 Sales 18,00,000 The cost records revealed the following actual data for the second quarter of the year - Production was 25,000 units. Direct Materials consumed 96,000 kg at 2.25 per kg. Direct Wages paid 1,60,000 hours at 4.10 per hour, out of which 6,000 hours being idle time were not recorded on production. Overheads were 3,32,000 out of which 1,50,000 were fixed. 25,000 units were sold at an average Price of P 51.50 per unit. Required 1. Prepare a statement of Actual Profit/Loss for Q-2. 2. Analyse the variances and present an Operating Statement reconciling the Budgetod Profit with Actual Profit