Compute and show as many variances for sales, materials and labour in as much detail as the available information allows. Give one (1) possible explanation for each variance you compute.

Sembawang Electronics Ltd (SEL) is a manufacturer of component parts used in the biotechnology industry. The company has been on a growth trajectory with the govemment's emphasis on the biotechnological sector. SEL has been actively expanding its production facilities to meet the rapid growth. With growing maturity in this sector however, the company has also been facing stiff competition and management has been monitoring the performance of the company very closely. The variance analysis prepared by the management accountant for the most recent year ended March 2022 is as follows: Variance Sales (units) 10,000 12.000 2,000 Master Actual Sales Materials Labour Production overheads Selling, general and admin costs Operating income S'000 1,500 (500) (300) (400) (100) 200 $'000 $'000 1,750 250 F (575) (75) (U) (310) (10) U) (500) (100) (U) (100) 0 265 65 (F) As this is the final result for the financial year, she expects intense discussion at the next management meeting. She is apprehensive about the upcoming meeting given the less than satisfactory performance of the factory manager. The following additional information has been gathered: A higher grade of skilled labour was used to meet with the increased production requirements. They were paid $40 per how while the budgeted rate was $30 per hour The actual price paid per kilogram of materials was per budgeted. 1 kilogram of material per component is required per the standard cost card. Budgeted production overheads comprise 60% fixed cost and 40% variable costs. Budgeted selling and distribution costs consist of 50% fixed cost and 50% variable costs. Production is equal to sales. Sembawang Electronics Ltd (SEL) is a manufacturer of component parts used in the biotechnology industry. The company has been on a growth trajectory with the govemment's emphasis on the biotechnological sector. SEL has been actively expanding its production facilities to meet the rapid growth. With growing maturity in this sector however, the company has also been facing stiff competition and management has been monitoring the performance of the company very closely. The variance analysis prepared by the management accountant for the most recent year ended March 2022 is as follows: Variance Sales (units) 10,000 12.000 2,000 Master Actual Sales Materials Labour Production overheads Selling, general and admin costs Operating income S'000 1,500 (500) (300) (400) (100) 200 $'000 $'000 1,750 250 F (575) (75) (U) (310) (10) U) (500) (100) (U) (100) 0 265 65 (F) As this is the final result for the financial year, she expects intense discussion at the next management meeting. She is apprehensive about the upcoming meeting given the less than satisfactory performance of the factory manager. The following additional information has been gathered: A higher grade of skilled labour was used to meet with the increased production requirements. They were paid $40 per how while the budgeted rate was $30 per hour The actual price paid per kilogram of materials was per budgeted. 1 kilogram of material per component is required per the standard cost card. Budgeted production overheads comprise 60% fixed cost and 40% variable costs. Budgeted selling and distribution costs consist of 50% fixed cost and 50% variable costs. Production is equal to sales