The Wool Witch Company manufactures woollen dolls that sell for £28 each and the company plans to manufacture and sell 5,000 a month. The standard production costs per doll are:

Last month the company made and sold 4,000 dolls for £108,000.
Its costs were:

a Calculate the budgeted profit for the month.
b Calculate the actual profit for the month.
c Calculate cost and sales contribution variances in as much detail as the information permits.
d Evaluate the information disclosed.

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Direct materials Direct labour Fixed overheads 1 kg at 3 per kg 1 hour at 10 per hour 10,000 per month