Supersonic plc manufactures an assembly mounting for the aircraft industry. In July, it was expected that 80,000 assembly mountings would be sold at £18.80 each. In actual fact, 76,000 assembly mountings were sold for £20.00 each. The cost data is provided below.

Budgeted data Actual data Direct materials 200,000 sheets of 150,000 sheets of metal at £2.10 each metal at £2.20 each Direct labour 50,000 hours at 51,000 hours at

£8.00 per hour £7.50 per hour Variable overheads £45,000 recovered £41,000 at £0.90 per direct *¢

labour hour Fixed overheads £78,000 £80,000 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 July.

(iv) Comment on the results. LO1