Reference no: EM132976804

SICON manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing inventories or work in progress. The company operates a standard costing system and analysis of variances is made on a monthly basis.

The standard cost card for the product, is as per below:

                                                                         €
Direct materials 0.5 kilos at €3 per kilo                    1.50
Direct wages 2 hours at €2.00 per hour                   4.00
Variable overheads 2 hours at €0.40 per hour             0.80
Fixed overhead 2 hours at €3.70 per hour               7.40
Standard cost                                                         13.70
Standard profit                                                                 6.30
Standard selling price                                                      20.00

• Selling and distribution expenses are not included in the standard cost and are deducted from profit through Profit and Loss.
• Budgeted output for June 2019 was 5,100 units.

Actual results for June 2019 were as follows:

• Production of 5,400 units was sold for €106,500;
• Materials used in production amounted to 2,500 kilos at a total cost of €8,100;
• Labour hours paid for, amounted to 8,500 hours at a cost of €16,500;
• Actual operating hours amounted to 8,000 hours;
• Variable overheads amounted to €3,400;
• Fixed overheads amounted to €42,000;
• Selling and administration expenses amounted to €18,000.

Required

Problem 1: Calculate ALL variances for June 2019.