The standard cost of producing one kiredo is as follows:

Fixed overheads are expected to be £180,000 per annum, and the plan is to produce 12,000 kiredos per annum.
Last month 1,200 kiredos were produced and the costs incurred were:

Calculate the cost variances in as much detail as the information permits and comment on the results.

Transcribed Image Text:

Direct materials 5 kg at 12 per kg 60 Direct labour 2 hours at 16 per hour 32 Variable overheads 2 hours at 8 per hour 16