DIY ltd manufactures aluminium ladders, selling online directly to the public. DIY ltd is reviewing the nancial performance of the PL100, a recently launched everyday step ladder. Forecasts and standard costings for the PL100 are summarised below. Budgeted volumes for the month were 8,000 units and the standard selling price and costs for the PL100 are as follows: Selling price per unit: 75 Variable production costs per unit: Materials (4 kg @ 9 per kg) 36 Variable labour (0.5 hours @ 16 per hour) 8 Variable overheads (6 per labour hour) 3 Fixed overhead recovery per unit (2 per labour hour) 1 The actual monthly trading results for the PL100 are set out below: Sales (7,000 units) 490,000 Materials purchased (26,250 kg) 236,250 Variable labour costs (3,200 hours) 48,000 Variable overheads 17,600 Fixed production overheads 7,500 Actual prot for the month 180,650 There were no opening or closing stocks of materials or finished goods, all the month's production was sold and DIY ltd operates an absorption costing system