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14 Question 1 10 [1 Oscar Ltd manufactures a sonar device, the Echo, which provides information for marine engineers' research projects. The sonar device has a global market. During the quarter, April June 2022, the company has budgeted to make and sell 10,000 units of Echo. The company uses a standard costing system to develop its budgets. The standard cost per unit of Echo is detailed in Table 1 - Standard Cost Card for Echo. Table 1 - Standard Cost Card for Echo 80 Selling Price per unit Direct Materials Direct Labour 10 20 2 kgs @ 5 per kg 2 hours @ 10 per hour 2 hours @ 2 per hour Fixed overheads 4 34 Profit 46 The actual results were as follows. i) 11,000 units were made and sold for a total of 858,000 ii) Direct materials used were 21,500 kgs at a total cost of 120,000. iii) Direct labour was 21,900 hours at a cost of 219,000 iv) Actual fixed overheads were 38,000 3 points 1(a) Calculate the total budgeted and total actual prohit [3 marks] points 1(b) Calculate the sales and cost variances for a marginal costing system. [14 marks]