52 on statement - use of MPV vs MPPV M 10 X Ltd produces and sells a single product. Standard Cost Card per unit of the product is as follows: Particulars Direct Materials: A 10 kg at 5 per kg 50.00 B 5 kg at 6 per kg 30.00 Direct Wages Shours at 5 per hour 25.00 Variable Production Overheads 5 hours at 12 per hour 60.00 Fixed Production Overheads 25.00 Total Standard Cost 190.00 Standard Gross Profit 35,00 Standard Selling Price 225.00 Fixed Production Overhead has been absorbed on the expected annual output of 25,200 units produced evenly throughout the year. During the month of December, the following were the actual results for an actual production of 2,000 units. Particulars Sales 2,000 units at 225 4,50,000 Direct Materials: A 18,900 kg 99,225 B 10,750 kg 61,275 Direct Wages 10,500 hours (actually worked 10,300 hours) 50,400 Variable Production Overheads 1,15,000 Fixed Production Overheads 56,600 Total Costs 3,82,500 Gross Profit 67,500 The Material Price Variance is extracted at the time receipt of materials. Material Purchases were A 20,000 kg at * 5.25 per kg, 8 11,500 kg at? 5.70 per kg. Required: 1. Calculate all Variances 2. Prepare an Operating Statement showing Standard Gross Profit, Variances and Actual Gross Profit. 3. Explain the reason for the difference in Actual Gross Profit given in the question and calculated in 2 above