49 24. Material, Labour and OH Variances - Standard and Actual Costs Reconciliation RTP The Dearborn Company manufactures Product X in standard batches of 100 units. A standard cost system is in use. The standard costs for a batch are as follows - Raw Materials 60 Kg at 4.50/kg 270 Direct Labour 36 hrs at 8.25/hour * 297 Overhead 36 hrs at 4.75/hour 171 Production for April amounted to 210 batches. The relevant statistics follows - Standard output per month 24,000 units Raw material used 13,000 Kg Cost of Raw Material used 61,100 Direct Labour Cost * 66,924 Overhead Cost * 36,000 Actual hours worked 7,920 The Management has noted that Actual Costs per batch deviate somewhat from Standard Costs per Batch. Prepare a statement containing a detailed explanation of the difference between the Actual Costs and Standard Costs