Thompson plc manufactures a single product. The budgeted costs per unit for the month of April 2014 were:
|
£ |
|
|
Direct materials (£3 per kg) |
6 |
|
Direct labour (£8 per hour) |
20 |
Anticipated production for April 2014 was 10,000 units. The actual results for April 2014 were:
|
£ |
|
|
Direct materials (20,000 kg) |
55 |
|
Direct labour 25,000 hours) |
240 |
The actual costs were based on production of 9,000 units. Calculate the labour and materials variances.