JAMES BADUONG KUJO LTD produces one product and the entire product sold as soon as produced. There is synchronization between production and sales and work in progress is negligible. The company operates standard costing system and analysis of variance is made every month. The cost for the month of October, 2020is as follows;

GHS

Direct material (0.5kg @ GHS400 per kg) 200

Direct labour (2hours @ GHS200 per hour) 400

Variable overheads (2hours @GHS30 per hour) 60

Fixed overheads 740

Standard cost 1,400

Standard profit 600

Standard selling price 2,000

Selling and distribution costs are not included in the standard cost card and are deducted from profit as a period cost. Budgeted output for the month of October, 2020 was 5,100 units.

Actual results for the month of October, 2020 were as follows;

Production of 4,850 units were sold for GHS 9,560,000

Materials consumed in production amounted to 2,300kg at a total cost of GHS980,000

Labour hours paid for amounted to 8,500 hours at a cost of GHS1,680,000

Actual operating hours amounted to 8,000 hours

Variable overheads amounted to GHS260,000

Fixed overheads amounted to GHS4,230,000

Selling and distribution cost amounted to GHS1,100,000

REQUIRED:

Calculate all variances and prepare an operating statement for the month of October, 2020.