QUESTION -VARIANCES 3 G'Day Limited manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing stocks 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, a boomerang, is as follows: Direct materials Direct wages Variable overheads Fixed overhead Standard cost Standard profit Standard selling price 0.5 kilos at 40.00 per kilo 2 hours at 20.00 per hour 2 hours at 3.00 per hour 2 hours at 37.00 per hour 20.00 40.00 6.00 74.00 140.00 60.00 200.00 Selling and administration expenses are not included in the standard cost, and are deducted from profit as a period charge. Budgeted output and sales for the month of June 2xx5 was 5,100 units. Actual results for June 2xX5 were as follows; Production of 4,850 units was sold for 956,000; Materials consumed in production amounted to 2,300 kilos at a total cost of 98,000; Labour hours paid for amounted to 8,500 hours at a cost of 168,000; Actual operating hours amounted to 8000 hours; Variable overheads amounted to 26,000; Fixed overheads amounted to 423,000; Selling and administration expenses amounted to 180,000. You are required to: (a) calculate all variances; (b) prepare an operating statement for the month ended 30 June 2xx5