An alpha manufacturing company produces a single product, which is known as Sigma.

The product requires a single operation, and the standard cost for this operation is represented in the following standard cost card:

Direct materials: 2kg of A at £10 per kg 1 kg of B at £15 per kg Direct Labour: 3 hours at £9 per hour Variable overhead: 3 hours at £2 per hour Total standard variable cost Standard Selling Price

20 15 27 6 68 88

Alpha Limited plans to produce 10 000 units of Sigma in the month of April, and the budgeted performance is as follows:

Sales : 10 000 x 88 = 880 000

Direct material: 20 000 x 10 = 200 000

10 000 x 15 = 150 000

Direct Labour 30 000 x 9 = 270 000

Variab Overherheads 30 000 x 2 = 60 000

Budgeted contribution 200 000

Fixed Overheads = 120 000

Budgeted Profit = 80 000

The actual results for April are:

Sales : 9 000 x 90 = 810 000

Direct material: 19 000 x 11 = 209 000

10 100 x 14 = 141 400

Direct Labour 28 500 x 9.6= 273 600

Variab Overherheads 28 500 h=> 52 000

Budgeted contribution 134 000

Fixed Overheads = 116 000

Budgeted Profit = 18 000

Manufacturing overheads are charged on the basis of direct labor hours. Actual production and sales for the period were 9 000 units.

Calculate the variances