Elite Sweet Pty Ltd is a company that only sells Halloween candies in Australia. Due to the delicate shapes

of candies, this company employed a great deal of high skilled employees. The following information is

generated from the company in June 2019. Note the candy was sold in a 12-piece box.

Actual

Boxes produced 1000

Direct materials used in production 21 500 g

Actual direct material cost $6020

Actual direct manufacturing labor-hours 110

Actual direct manufacturing labor cost $1265

Standards

Purchase price of direct materials $0.03/g

Materials per box 200 g

Wage rate $18 per hour

Boxes per hour 10

As the company management accountant, we are required to write report on the company's standard

costing system for the month of June. In report,

please provided a detailed analysis on the variances for direct material and direct labor and present all the

data in an appropriate diagram.

Discuss possible causes for each of the variances that you calculated. Consider each variance separately.

Also, consider possible interactions between variances.

Recommend for the future improvements on the unfavourable variances calculated.