Peter Peacock plc manufactures a subcomponent for the car industry. There are the following details for August:

 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 August.

(iv) Comment on the results.

(a) Budgeted data Revenue: 200,000 subcomponents at 2.80 each Direct labour: 40,000 hours at 7.25 per hour Direct materials: 100,000 sheets of metal at 1.25 each Variable overheads: 40,000 recovered at 1.00 per direct labour hour Fixed overheads: 68,000 (b) Actual data 220,000 subcomponents were actually sold and produced Revenue: 220,000 subcomponents at 2.78 each Direct labour: 43,500 hours at 7.30 per hour Direct material: 125,000 sheets of metal at 1.20 Variable overheads: 42,500 Fixed overheads: 67,000