Skye Ltd has the following standard cost card for producing 1 unit of its only product

Direct materials 9kg at 12/kg 108

Direct labour 3 hrs at 18/hr 54

Variable overheads 3 hrs at 4/hr 12

Fixed overheads 3 hrs at 6/hr 18

Total standard cost 192

The budget production for March was 8,000 units

The actual results recorded for March were as follows:

Actual

Units produced 9,600

Direct materials 89,160 kg 1,037,822

Direct labour 29,950 hrs 512,145

Variable overheads 122,196

Fixed overheads 158,136

Actual cost of production 1,830,299

The variable production overhead is incurred in proportion to the direct labour hours worked.

Required: Calculate the variances for March, including fixed overhead variances stating clearly whether they are adverse or favourable