The retail group has introduced a new product that uses a standard costing system. Produce a paper for management with the following data. The standard costs for 1000 kilograms of the new product are: Requirements: Material A- 1600kg, Material B-400kg, Material C-400kg Price/kg () 0.50, 0.80,0.20 respectively Total cost() 800, 320, 80 respectively Input-2400. Output-2000 The production of 1000kilograms of the new product requires 1200kilograms of raw materials. Hence the yield is 1000/1200 or 5/6 of the input. The current materials records indicate: Opening inventory Material A- 20000kg Material B- 24000kg Material C- 30000kg Purchases (units) in April for Material A,BC 324,000@0.48, 60,000@0.84, 64000@0.22 respectively Closing inventory for material A,B,C, 30000kg, 8000kg, 22000kg respectively To convert 1200kg of raw materials into 1000kg of finished product required 25 hours of labour at 8.25per hour. Actual director labour hours and costs are 3800 hours at 31,350 Factory overhead is applied on a direct labour hour basis at a rate of 9 per hour(5 fixed,4 variable). Factory overhead is 36000 with 4000 direct labour hours. The actual overheads are 38,000. The actual finished production is 200,000kgs of new products. The standard cost per kilogram of the finished product are as follows Materials- 0.60per kg Labour- 0.24 per kg Factory overheads- 0.20 per kg The standard selling price per unit is 25% mark up on total cost. The actual selling price is 20% mark up on total cost Required 1. Calculate the materials, labour and overhead variances 2.Calculate the total and unit costs of the finished product 3. Produce an absorption costing statement that compares the standard cost of the finished product against the actual cost of the finished product. This statement should also show the standard selling price of the finished product against the actual selling price of the finished product. 4. Interpret the variance results ( as calculated in part A) considering both financial ad non financial factors