Wee Ltd, produces a single product in one of its factory. For control and measurement purposes, a standard costing system was recently introduced and is now in operation.

The standards set for the month of July were as follows:

Production and sales: 16,000 units

Selling price (per unit): $140 .

Materials:

Material XX: 6 kgs per unit at $12.25 per kilogramme

Material YY: 3 kgs per unit at $3.20 per kilogramme

Manpower: $4.5 hours per unit at $8.40 per hour

Fixed overheads are at $86,400 per month. .

The actual data for the month of July are as follows:

- Produced 15,400 units, which were sold at RM138.25 each.

- Materials :Used 98,560 kgs of material XX at a total cost of $1,256,640.

:Used 42,350 kgs of material YY at a total cost of $132,979.

- Labour :Paid an actual rate of $8.65 per hour to the labour force. The total amount paid out amounted to $612,766.

- Fixed overheads costs $96,840.

Required:

(a) Calculate the actual and budgeted profits for the month of July based on the marginal costing system.

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(b) Calculate the following variances: -

i) Material price and usage variances;

ii) Labour rate and efficiency variances;

iii) Fixed overhead expenditure variance; and

iv)Sales margin price and volume variances.

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(c) Prepare a statement reconciling the actual with the budgeted profit or loss figure based on your answers in (b) above.