Reference no: EM131437261
Question: The following are the budgeted and actual income statements for Baxter Ltd for the month of July:
Budget Actual
Output 1,000 units 1,050 units
(Production and sales)
£ £
Sales revenue 100,000 104,300
Raw materials (40,000) (40,000 meters) (41,200) (40,500 meters)
Labour (20,000) (2,500 hours) (21,300) (2,600 hours)
Fixed overheads (20,000) (19,400)
Operating profit 20,000 22,400
Produce a reconciliation of the budgeted and actual operating profit, going into as much detail as possible with the variance analysis.
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