To enable students in using variance analysis for the purpose of benchmarking when evaluating performance and to control organisational output, efficiency and sustainability. Requirement: Standard Costing & Variance Analysis Hungry Jane, a local restaurant, has been examining the profitability of its set menu. At the beginning of the year the selling price was based on the following predicted costs: RM Entre: Soup of the day 100 grams of mushrooms@ RM4.00 per kg Cream and other ingredients 0.40 0.20 Main course: Roast turke Turkey 0.10 kg RM14.00 per kg Potatoes 0.2 kg RM0.25 per kg Vegetables 0.3 kg @ RM0.90 per kg Other ingredients and accompaniments 1.40 0.05 0.27 0.23 Fresh tropical fruit salad Fresh fruit 0.15 kg @ RM3.00 per kg 0.45 The selling price was set at RM7.50, which produced an overall gross profit of 60%. During October the number of set menus sold was 860 instead of the 750 budgeted: this increase was achieved by reducing the selling price to RM7.00. During the same period an analysis of the direct costs incurred showed 90 kg of mushrooms Cream and other ingredients 70 kg of turkeys 180 kg of potatoes 270 kg of vegetables Other ingredients and accompaniments 140 kg of fresh fruits RM 300 160 1,148 40 250 200 450 There was no stock of ingredients at the beginning or end of the month. Required: a. Calculate the budgeted profit for the month of October b. Calculate the actual profit for the month of October c. Prepare a statement which reconciles your answers to (a) and (b) above, showing the variances (15) in as much detail as possible. Prepare a report, addressed to the restaurant manager, which identifies the two most significant variances, and comments on their possible causes. d. Total: 20)