AKEI is an elite desk manufacturer. At the start of May 2022, the following budgeted unit amounts

(based on a standard costing system) related to its manufacture of executive desks (made out of oak):

Direct materials: 16 square metres of oak per desk at €20 per square metre Direct manufacturing labour: 3 hours per desk at €30 per direct manufacturing labour-hour Budgeted production for May 2022 was 700 executive desks. There were no opening stocks of direct materials or finished goods on 1 May 2022. Work in progress is minimal.

Actual results for May 2022 are as follows:

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Direct materials purchased (12 640 square metres) Direct materials used (11 850 square metres) Direct manufacturing labour (2325 hours at 31 per hour) 259 120 ? ? Actual production in May 2022 is 750 executive desk units. The purchase price for oak wood remained unchanged throughout May 2022. Required 1 Prepare a detailed flexible-budget variance analysis for May 2022 covering direct materials and direct manufacturing labour. 2 Give two explanations for each of the variances you calculate in requirement 1.