ii) Bhavnita manufactures one product and the entire product is sold as soon as it is produced. There are no opening or closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for the product is as follows. Standard cost card per one unit: Direct material 0.5 kilos at 4 per kilo 2.00 Direct wages Variable overheads 2 hours at 2.00 per hour 4.00 2 hours at 0.30 per hour 0.60 Fixed overhead 2 hours at 3.70 per hour 7.40 Standard cost Standard profit Standard selling price 14.00 6.00 20.00 4 Selling and administration expenses are not included in the standard cost, and are deducted from profit as a period charge. Budgeted (planned) output for the month of June 2021 was 5,100 units. Actual results for June 2021 were as follows: Production of 4,850 units was sold for 95,600. Materials consumed in production amounted to 2,300 kgs at a total cost of 9,800 Labour hours paid for amounted to 8,500 hours at a cost of 16,800. Actual operating hours amounted to 8,000 hours. Variable overheads amounted to 2,600. Fixed overheads amounted to 42,300. Selling and administration expenses amounted to 18,000.