Question four: Wimula Limited manufactured one product, and the entire product is sold as it is produced. There are no opening or closing stocks and work in progress is negligible. The firm operates a standard costing system and analysis of variance is made every month. The standard cost cards for the product is as follows: Selling and administration expenses are not included in the standard cost and are deducted from profits as a period charge. Budgeted output for the month of December 2022 was 5,100 units. Actual results for the month of December were as follows: Production of 4,850 units was sold for K95, 600 . Materials consumed in the production amounted to 2,300Kgs at a total cost of K9,80 Labour hours paid for amounted to 8,500 hours at a cost of K16,800. Actual operating hours amounted to 8,000 hours. Variable overheads amounted to K2,600. Fixed overheads amounted to K42, 300 Selling and administration expenses amounted to K18, 000 You are required to: a. Calculate all variances b. Prepare an operating statement for the month ended 202231 December