Seminar 7 - XYZ PICTIB Ltd Standard Costing, Flexible Budgets & Variance Analysis JB Ltd. a construction business, currently owned by XYZ Plc, operates a standard marginal cost accounting system. Information relating to Product), which is made in one of the company departments is given below: Standard Marginal Product Product ] Cost Unit (: Direct Material 6 kilograms at 4 per kg 24 Direct Labour 1 hour at 12 per hour 12 Variable Production Overhead 3 Total 39 * Variable production overhead varies with units produced. Budgeted fixed production overhead, per month: 100,000. Budgeted production for Product: 20 000 units per month. Actual production and costs for month 6 are as follows: Units of J Produced Direct materials purchased and used: 113 500kg Direct labours 17 800 hours Variable production overhead incurred Fixed production overhead incurred 18 500 ( 442 650 223 000 58 800 104 000 828 450 Required: (a) Prepare a columnar statement showing, by element of cost, the: (1) Original Budget; Flexed Budget; (iii) Actual; (iv) Total Variances (b) Subdivide the variances for direct material and direct labour shown in your answers to (a) (1) -(iv) above to be more informative for managerial purposes