2. Newgate Ltd Newgate Limited manufactures Product A and the standard cost is as follows: Selling price Direct materials Direct labour Variable overheads Fixed overheads Standard cost Standard profit 0.5 kg@ $8/kilo Required 2 hours @ $10/hour 2 labour hours @ 60c/hour 2 hours @ $7.40/hour $ 52.00 4.00 20.00 1.20 14.80 40.00 12.00 Other information is as follows: 1. Budgeted output for the month of February was 5,100 units. 2. Production of 4,850 units was sold for $232,800. 3. Materials consumed were 2,300 kg costing $19,600. 4. Labour hours were 8,000 hours costing $84,000. 5. Variable overheads cost $5,200. 6. Fixed overheads cost $84,600. a. Calculate two variances for each cost except fixed overheads (just one variance), using the contribution approach and prepare an operating statement for the month of February, reconciling the actual and the budgeted profit figures.

2. Newgate Ltd Newgate Limited manufactures Product A and the standard cost is as follows: Other information is as follows: 1. Budgeted output for the month of February was 5,100 units. 2. Production of 4,850 units was sold for $232,800. 3. Materials consumed were 2,300kg costing $19,600. 4. Labour hours were 8,000 hours costing $84,000. 5. Variable overheads cost $5,200. 6. Fixed overheads cost $84,600. Required a. Calculate two variances for each cost except fixed overheads (just one variance), using the contribution approach and prepare an operating statement for the month of February, reconciling the actual and the budgeted profit figures