Variance

Prancer Co uses standard costing to control its costs and revenues. A standard cost card for its only product is given below together with a standard cost operating statement for last month.
Standard cost card

$ per unit
Selling price 150
Direct materials 2 kg @ $25/kg 50
Direct labour 3 hours @ $10 per hour 30
Fixed overhead 2 hours at $10 per hour 20
Profit 50

Standard cost operating statement

$ $
Budgeted profit 600,000
Sales volume variance 60,000 adv
Standard profit on actual sales 540,000
Sales price variance 20,000 fav
560,000
Production cost variances
Adverse Favourable
$ $
Material price 7,500
Material usage 8,000
Labour rate 2,000
Labour efficiency 500
Fixed overhead expenditure 7,000
Fixed overhead volume 2,000
19,000 8,000 11,000 adv
Actual profit 549,000

Select the appropriate words, phrases or numbers to correctly complete the commentary on the last month’s results.

Production was 100 units less than budgeted (Answer : 100 units less)

Hello Teacher,

Please explain, how to calculate Actual Production Units. (This question from F2-Management Accounting (Extra MTQs)

Thank you and have a nice day.