Supersonic plc manufactures an assembly mounting for the aircraft industry. In July, it was expected that 80,000 assembly mountings would be sold at £18.80 each. In actual fact, 76,000 assembly mountings were sold for £20.00 each. The cost data are provided below.

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 July.

(iv) Comment on the results.

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Direct materials Direct labour Variable overheads Fixed overheads Budgeted data 200,000 sheets of metal at 2.10 each 50,000 hours at 8.00 per hour 45,000 recovered at 0.90 per direct labour hour 78,000 Actual data 150,000 sheets of metal at 2.20 each 51,000 hours at 7.50 per hour 41,000 80,000