The standard cost card of NetbacksLtd is shown below. The companymanufactures and distributes a single product known as "Strangler cases."

NetbacksLtd-StandardCostCard Product: Strangler Cases

(Currentlyattainablestandards)

Description	Quantitiesand prices	Unit
Direct materials	2.0kilos@ 0.80per kilo	1.60
Directlabour		4.00
Fixedoverhead	6.00perunitproduced	6.00
	Standardtotalunitcost:	11.60
	Standardselling price:	20.00
	Standardunitgrossprofit:	8.40

Otherinformation:

The fixed overhead absorption rate is based on a consistent monthly production of1,500 units

ActualtradingresultsforApril2013are:

NetbacksLtd

ActualTradingResults(April2013)

Sales(for1,500unitssold)		30,150
Directmaterials(for2,700kilosconsumed)	2,700
Directlabour(405hoursrecorded)	6,400
Fixedoverhead(1,200unitsproduced)	9,150
Costof sales:	(18,350)
Grossprofit:		11,900

NetbacksLtd(cont.) Required:

1. Show detailed analysis of the variances from standard that will reconcile expected (standard) and actual profits for the most recent trading period
2. Explaintheresultsofyourdetailedvariancecalculationsandthepossible causes for each variance