You are the management accountant of T plc. The following computer printout shows details relating to April:

T plc uses a standard absorption costing system.
There was no opening or closing work in progress.
(a) Prepare a statement which reconciles the budgeted profit with the actual profit for April, showing individual variances in as much detail as the above data permit.
(b) Explain the meaning and relevance of interdependence of variances when reporting to manager

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Actual Budget Sales volume Selling price per unit Production volume Direct materials 4900 units £15.00 5400 units 5000 units £14.00 5000 units 5 kgs price per kg 10 600 £0.60 10000 £0.50 Direct labour hours per unit rate per hour 0.55 £11.40 0.50 £12.00 Fixed overhead: Production Administration £10 300 £3100 £10000 £3 000