Sun plc has budgeted to produce 5 000 units of Beam per month. On this basis the standard cost per Beam is set as follows:

For the month of May the actual production was 4 800 Beams and the actual costs incurred for the month were:
Direct materials 241 000 kilos at a total cost of £43 300 Direct labour 3 400 hours at a cost of £5 500 Fixed overhead incurred £4 140 Mr Ray, the Management Accountant, has asked you to calculate the variances for the month and prepare a report briefly giving reasons for each variance.
Required:
Calculate the variances and prepare the report asked for by Mr Ray.

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Direct materials Direct labour Fixed overhead 50 kilos at 0.18 per kilo 45 minutes at 1.60 per hour 0.80 per unit