You have been provided with the following Operating statementfor Burdon Co plc: BudgetActual Sales400,000468,000 Cost of sales255,000293,000 145,000175,000 Selling and Adm95,000105,000 NETPROFIT50,00070,000 Output(units)400,000460,000 COST OF SALES Direct Materials115,000135,000 Directlabour80,00088,000 Direct expenses60,00070,000 225,000293,000 Selling and administration Sellingexpenses45,00054,000 Administrationexp50,00051,000 95,000105,000 You are given the following info: a. material and labour cost vary in direct proportion to output b. factory expenses are treated 30% fixed and 70% variable c. Selling expenses are treated 20% fixede and 80% variable d. administration expenses are fixed e. Sales turnover figures are based on selling price of 1per unit. Prepare a flexible budget covering the level of output of 460,000 units and compute the variances