A company has prepared the following standard cost card:
					$ Per unit
Materials		(4 kg at $4.50 per kg)			18
Labour		(5 hrs at $5 per hr)			25
Variable overheads		(5 hrs at $2 per hr)			10
Fixed overheads		(5 hrs at $3 per hr)			15
Total					$68
Budgeted selling price					$75 per unit.
Budgeted production				8,700 units
Budgeted sales				8,000 units
There is no opening inventory
The actual results are as follows:
Sales:		8,400 units for						$613,200
Production:		8,900 units with the following costs:
Materials			(35,464 kg)					163,455
Labour			(Paid 45,400hrs; worked 44,100 hrs)					224,515
Variable overheads								87,348
Fixed overheads								134,074

a) Calculate variances, identify possible causes and recommend corrective action.

b) prepare an operating statement reconciling budgeted and actual results

c) Report findings to management in accordance with identified responsibility centers.