Modern Production Ltd uses variance analysis as a method o following information is available for the year ended 31st May 201 Budgeted information for 2400 units was: Sales price Rs 250 Cost per unit: Direct material 3 kgs at Rs 20 per kg Direct labour 4 hours at Rs 12 per hour Fixed overhead 4 hours at Rs 10 per hour Actual information for 2500 units was: Sales revenue Rs 612 500 Direct materials 7400 kgs costing Rs 150 000 Direct labour 11000 hours costing Rs 130 000 Fixed overhead Rs 121 000 Required: (a) Calculate sales variances, direct material variances, direct labour variances and fixed overhead variances. [14 marks) - (b) Prepare a statement to reconcile the original budgeted profit with the actual profit [10 marks) 1 (c) Explain causes for material price variance, and labour efficiency variance for Modem Production Ltd. [4 marks) (d) Explain the relationship between the material price and material usage variance for Modern Production Ltd. [2 marks]