BS Limited manufactures a single product and operates a standard costing system. Using the data given below, you are required to prepare the operating statement for the month ended 31 October to show the budgeted profit; the variances for direct materials, direct wages, overhead and sales, each analysed into causes; and actual profit. Budgeted and standard cost data: Budgeted sales and production for the month: 10 000 units Standard cost for each unit product: Direct material: X 10 kg at R1 per kg Y 5 kg at R5 per kg Direct wages: 5 hours at R8 per hour Budgeted fixed overheads are R300 000 Budgeted sales prices has been calculated to give a contribution of 50 per cent of the selling price. Actual data for the month ended 31 October: Production: 9 500 units sold at a price of R160 Direct material consumed: X: 96 000 kg at R1.20 per kg Y: 48 000 kg at R4.70 per kg Direct wages incurred 46 000 hours at R8.20 per hour Fixed production overhead incurred R290 000