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Maranda (Pvt) Ltd manufactures one type of face masks in the wake of Covid 19....

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Maranda (Pvt) Ltd manufactures one type of face masks in the wake of Covid 19. There are no opening and closing stocks. The following information is available for the month of September 2020. Maranda Hand Sanitizer Direct material 0.5 kg @ $4.00 per kg 2.00 Direct wages 2 hours @ $2.00 per hour 4.00 Variables overheads 2 hours @ $0.30 per hour 0.60 Fixed overheads 2 hours @ $3.70 per hour 7.40 Standard cost 14.00 Profit 6.00 Standard Selling price 20.00 Selling and administration are a separate charge which is deducted from profit as period costs. The company budgeted to produce 5 100 units for the month of September 2020. The actual production and selling results for the month of September 2020 were as follows; i. 4 850 units were produced and sold for $95 600. ii. Direct materials 2 300 kg at a total cost of $9 800. iii. Direct wages paid were $16 800.00 for 8 500 hours. iv. Actual operating hours were 8 000 hours. Total variable costs amounted to $2 600. vi. Total fixed overheads costs amounted to $42 300. vii. Administration and selling expenses amounted to $18 000. V. a. Required: Calculate all variances (45% marks) b. Prepare an operating statement for the month of September 2020. (5% marks)

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