The performance management report for the first quarter of 2020 of XYZ Limited is to be presented at the Executive Committee’s (EXCO) monthly meeting. A draft performance report for the first quarter...

The performance management report for the first quarter of 2020 of XYZ Limited is to be presented at the Executive Committee’s (EXCO) monthly meeting. A draft performance report for the first quarter of business is reproduced below: Budget Actual Variance Sales (number of meals served) 6,000 5,400 600 (A) GH? GH? GH? Revenues 180,000 167,400 12,600 (A) Direct materials 48,000 49,140 1,140 (A) Direct labour 33,000 27,000 6,000 (F) Variable production overhead 21,000 18,900 2,100 (F) Fixed costs 36,000 40,000 4,000 (A) Profit 42,000 32,360 9,640 (A)Using a flexible budgeting approach, redraft the operating statement to provide a more realistic indication of the variances. Explain briefly your variances