WedGowns Ltd manufactures wedding dresses. The following information relates to the manufacture of gowns:

2018 2019

Units produced and sold 43,000 52,600

Direct manufacture labour-hours 22,000 26,000

Direct materials used (square metres) 130,000 152,000

Direct manufacture labour cost per hour $16 $17

Direct materials cost per metre $10 $11

Required:

Prepare an analysis of the change in annual costs from 2018 to 2019 including direct materials, direct manufacturing labor, and total inputs (taking into account - output adjustment, input price change and productivity change). Comment on the performance of WedGowns Ltd