Bodily Sdn. Bhd. manufacturers and sells a design of its product and has just introduced a system of standard costing and budgetary control. The detailed standard prime cost for a standard pack containing a dozen overalls is as follows: Cost Standard Price Standard Quantity Direct Materials 10 metres RM4 per metre Direct Labour 10 hours RM2.50 per hour Cost Direct Materials Direct Labour Total Prime Cost Budget (RM'000) Actual (RM'000) Variance (RM'000) 1,200 945 255 (Favourable) 750 709 41 (Favourable) 1,950 1,654 296 (Favourable) The normal budget is to produce 30,000 packs each month. During May, actual production was 24,100 packs, which used 236,180 metres of material and took 289,200 direct labour hours. There was no opening or closing work-in-progress. Required: As a manager of Bodily Sdn. Bhd., decide whether the above variances are a meaningful measure of the management team's performance or not against the product standard cost. [5 MARKS]