2 Maybey company produces and sells a single product known as covidtone, the standard variable cost for which is: per unit Direct material 11 litres at GH 2.00 22 Direct labour 5 hours at GH 6.00 30 Variable production overhead 10 Total standard variable cost 62 Standard contribution 58 Standard selling price 120 GH The variable production overhead is incurred in direct proportion to the direct labour hours worked. The budgeted sales volume for May was 2,000 units. The following were the actual results recorded during May: Number of units produced and sold: 1,750 GH Sales revenue GH 218,750 Direct materials: 19,540 litres purchased and used 41,034 Direct labour: 8,722 hours 47,971 Variable production overhead 26,166 115,171 Contribution 103,579 You are required to calculate the operating variances and present them in a statement which reconciles the budget and actual contribution for the month of May. (15 marks)