Ashmore Ltd manufactures a single product.

The Standard cost per unit for the month of June 2016 was:

Material 5 kilos at $4 per kilo

Labour 2 hours at $5 per hour

Budgeted production and sales for June 2016: 1500 units.

The standard selling price allows for a standard profit margin of 25%.

Actual results for June 2016 were:

Production	1600 units
Sales	1550 units @ $ 38 each
Materials	$ 31200 for 7200 kilos
Labour	$ 17500 for 3000 hours

Required:

(a) Calculate the standard (budgeted) selling price per unit.

1. (b) Calculate the following variances:

   1. (i) Material price

   2. (ii) Material usage

   3. (iii) Labour rate

   4. (iv) Labour efficiency

   5. (v) Sales price

   6. (vi) Sales volume

2. (c) Prepare a Statement to reconcile the Standard cost and Actual cost for June 2016. (show step by step)