A foundry producing castings of a standard alloy uses standard costs. The standard mixture is as follows: 40 per cent material A at `3,000 per tonne 30 per cent material B at `1,000 per tonne 10 per...

A foundry producing castings of a standard alloy uses standard costs. The standard mixture is as follows: 40 per cent material A at `3,000 per tonne 30 per cent material B at `1,000 per tonne 10 per cent material C at `4,200 per tonne 20 per cent scrap metal of this alloy. It is expected that from each charge, there will be a 5 per cent loss in melt, 35 per cent will be returned to scrap stock (runners, heads, etc.) and 60 per cent will be good castings. Scrap is credited and charged at the standard average cost of the metal mixture. Scrap is credited and charged at the standard average cost of the metal mixture. In a certain period, the following materials are purchased and used: 380 tonnes material A at `3,100 per tonne 330 tonnes material B at `1,100 per tone 90 tonnes material C at `4,200 per tonne 200 tonnes scrap metal at standard price. From this material, 608 tonnes of good castings are produced and 340 tonnes of scrap metal are returned to scrap metal stock. Prepare information for management showing standard metal costs, and variances from standard in respect of this period.