Gilbert Ltd uses standard costing methods for both budgeting and flexible budgets to understand and control variances. The following represents the data for December 2020.

	Budget	Actual
Sales Volume	20,000	25,000
Sales Price	$25	$23
No of units produced	24,000	29,000
No of DL minutes per unit	20 mins	18 mins
Qty of Raw Materials per unit	2kg	1.8kg
Standard variable overhead rate (per unit)	$3
Rate for labour (per hour)	$30	$32
Rate per kg of raw material	$2.00	$2.30

Calculate the following and provide brief feedback to the sales manager, procurement manager and production manager based on your calculations. Ensure you clearly indicate if variances are favourable or unfavourable

a)	Sales price variance
b)	The actual cost for direct materials
c)	Flexed budget for direct materials
d)	Flexible budget for direct materials
e)	Direct material price variance
f)	Direct material efficiency variance