A company manufactures and sells one product. At the end of 2017, the managers were disappointed that the profit was lower than expected and asked for an explanation of the results. -

		BUDGET			ACTUAL
Sales	1200 units	36000		1800 units	50000
Material (variable cost)	600 kg	6000		1000 kg	9000
Labour (variable cost)	2400 hours	12000		4000 hours	28000
Fixed overheads		6000			8000
Total costs		24000			45000
Profit / (Loss)		2000			5000

Calculate the following variances:_

1. Material price and usage
2. Labour rate and efficiency
3. Overhead spending and volume
4. Sales volume and price