XY is a very famous clothing company in the industry. They have a garment made from fine silk thread, a very expensive material. Therefore, the standard unit cost of the product is US$160.50, including 5.5 square metres of material at a cost of US$24 per square metre, and it takes 3 man hours for workers to complete it at a wage of US$9.50 per hour.

The company limited production to 1,800 units (10% less than planned) @ the end of March 31, 20X3. The loss of staff is not a bad thing as they will be replaced by a lower cost workforce.

This has been very helpful in the procurement of raw materials. The company has now saved US$21,660. If we can maintain this performance again in the next quarter, then these savings can be used to fund the refurbishment and improvement of the meeting rooms, which we expect to cost around $40,000:

Required:

1) Make a substitute statement to replace the reports provided by other leaders?

Report for the quarter to 31 March 20X3 Budget Actual Difference Units 2,000 1,800 200 Material cost ($) Labour cost ($) Total ($) 264,000 57,000 45,540 253,800 10,200 11,460 321,000 299,340 21,660