You work as a Management Accountant for the Victoria Plumbing branch based in Winchester. The company is a specialist in the installation of luxury Bathrooms and Kitchens. Their Bathrooms and Kitchens are highly sophisticated pre-designed or customised according to customer order. The local office is made of three departments Bathrooms and Kitchens being profit centres and General Administration (GA) being a cost centre. The GA is a fixed cost and consists of design, finance and administration

You have been provided the following budgeted information for the period ending December 2019.

Number of orders Bathrooms Kitchens

2,000 4,000

Price per orderin pounds 7,000 10,000

Direct costs per order 3,000 5,500

GA charge per order 2,500 2,500

Budgeted profit per order 1,500 2,000

Below is the actual information for the period ending December 2019

Bathrooms Kitchens

Number of orders 2,500 2,600

Price per order 6,100 13,000

Direct costs per order 2,700 8,000

GA cost per order 2,500 2,500

Actual profit per order 900 2,500

The actual cost of GA is estimated to be 17.5million.

Required:

1. Calculate the budgeted and actual profits for the Bathrooms and Kitchen departments and for the whole branch.

b)Calculate the Sales Price Variances, Sales Mix Profit and Sales Profit Quantity Variances. And c) a reconciliation for the actual and budgeted profits for the branch that shows the variances as much as possible.