Estimated costs:

Direct labour - 8% of sales value Direct material - 50% of sales value Variable production overhead - 8% of sales value Fixed production overhead - 12% of sales value Admin overhead - 5% of sales value

(Year estimations & figures) - 80 employees, 2000 hours worked by each employee, 40000 gearboxes manufactured in year as budgeted production & a 200/unit selling price.

(after 1 year extracted info) - labour cost 4.40/hr, 32000 units sold, 210.00/unit selling price, 160000 hours worked, variable production overheads 640000, fixed production overheads 810000, admin cost 350000, raw material prices 10% higher than expected & total raw material expenditure was 3.696 Million.

I need detailed help with workings to find out the following: -Material usage ( standard usage & actual usage), -Material usage variance. -(Variable overheads) Standard cost, actual cost, expenditure variance & also efficiency variance.

Please can you show the methods behind the working so i can follow what is going on. Cheers!