II New Motion Ltd manufactures a single product which has selling price is per unit. The
monthly budget units are units.
Direct material units @ per unit
Direct labour hours @ per hour
Variable overheads hours @ per hour
Fixed overheads hours @ per hour
Actual figures for the month of September are as follows:
Production units
Direct material units @ per unit
Direct Wages hours @
Variable overheads
Fixed overheads
Required: Calculate the material, labour and overhead variances for the month of September
and prepare summary of variances report with explanation referred to responsibility
persons for the variances.
