The following data have been collected for the month of April by a company which operates a standard absorption costing system: Appendix

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Actual production of product EM Actual costs incurred: Direct material E 660 metres 600 units () 6270 Direct material M 200 metres 650 Direct wages 3200 hours 23 200 Variable production overhead (which varied with hours worked) 6720 Fixed production overhead 27000 Variances () Direct material price: Material E 330 F Material M 50 A Direct material usage: Material E 600 A Material M nil Direct labour rate 800 A Direct labour efficiency 1400 A Variable production overhead: expenditure 320 A efficiency 400 A Fixed production overhead: expenditure 500 F volume 2500 F