Flexible budgets and computation of labour and material variances

(a) JB plc operates a standard marginal cost accounting system. Information relating to product J, which is made in one of the company departments, is given below:

"Variable production overhead varies with units pro- duced

Budgeted fixed production overhead, per month: 100 000. Budgeted production for product J: 20000 units per month. Actual production and costs for month 6 were as follows:

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Standard marginal product cost Unit () Product J Direct material 6 kilograms at 4 per kg Direct labour 1 hour at 7 per hour Variable production overhead" 24 737 34