Required:

Calculate all variances and complete (preepareee) an operating statement for the month ended June 2015 by using the following table format.

Sales variances		Favourable (F)/Adverse (A)
Sales price variance:
Sales volume variance:
Total sales variance

Direct material variances		Favourable (F)/Adverse (A)
Material price variance:
Material usage variance:
Total direct material variance

Direct labour variances		Favourable (F)/ Adverse (A)
Labour rate variance:
Labour efficiency variance:
Total direct labour variance

Variable overhead variances		Favourable (F)/ Adverse (A)
Variable overhead rate variance:
Variable overhead efficiency variance:
Total Variable overhead variance

Operating Statement (OP):

	Standard OP	Variances	Actual OP
Sales
Direct materials
Direct labour
Variable overheads
Total variable expenses
Contribution