The Wamco factory production variance report for the month of July XX is as follows:

Units produced budget	16,000
Units produced actual	15,000
Budgeted labour hours	12,000
Actual labour hours	12,500
Materials used per kilo budget	1,000
Materials used per kilo actual	2,000

Your task is to report the variances for July XX in both amounts and percentages. You must indicate in your answer whether the variances are favourable or unfavourable. Please see the below Wamco production unit variance calculation example as a guide of how to complete this task.

Example

Wamco used 15,000 of units in their production in July XX. 15,600 units were budgeted for the month. The variance is calculated as follows:

Wamco production unit variance calculation

Item	Budget	Actual	Variance	%	Favourable/Unfavourable
Units produced	15,600	15,000	-600	-3.85%	Unfavourable