Peter Peacock pic manufactures a subcomponent for the car industry. There are the following details for August.

(a) Budgeted data Sales: 200,000 subcomponents at £2.80 each Direct labour: 40,000 hours at £7.25 per hour Direct materials: 100,000 sheets of metal at £1.25 each Variable overheads: £40,000 recovered at £1.00 per direct labour hour Fixed overheads: £68,000

(b) Actual data 220,000 subcomponents were actually sold and produced Sales: 220,000 subcomponents at £2.78 each Direct labour: 43,500 hours at £7.30 per hour Direct material: 125,000 sheets of metal at £1.20 Variable overheads: £42,500 Fixed overheads: £67,000 Required:

(i) Calculate the flexed budget and overall variances.

(ii) Calculate the individual price and quantity variances.

(iii) Calculate a standard cost reconciliation statement for August.

(iv) Comment on the results. LO1