You have been provided with the following Operating statementfor Burdon Co plc: Budget Actual Sales 400,000 468,000 Cost of sales 255,000 293,000 145,000 175,000 Selling and Adm 95,000 105,000 NETPROFIT50,000 70,000 Output(units) 400,000 460,000 COST OF SALES Direct Materials 115,000 135,000 Directlabour 80,000 88,000 Direct expenses60,000 70,000 225,000 293,000 Selling and administration Sellingexpenses 45,000 54,000 Administrationexp 50,000 51,000 95,000 105,000 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