II$.$ New Motion Ltd$.$ manufactures a single product which has selling price is $120$ per unit. The

monthly budget units are $1000$ units.

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Direct material $20$ units @ $3$ per unit $60$

Direct labour $3$ hours @ $5$ per hour $15$

Variable overheads $5$ hours @ $2$ per hour $10$

Fixed overheads $5$ hours @ $1$ per hour $5$

$90$

Actual figures for the month of September are as follows:

Production $1,200$ units

Direct material $23,000$ units @ $4$ per unit

Direct Wages $3,500$ hours @ $5\mathrm{.}2$

Variable overheads $11,000$

Fixed overheads $6,000$

Required: Calculate the material, labour and overhead variances for the month of September

and prepare summary of variances report with explanation referred to responsibility

persons for the variances.