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Batu Lid operates in Windhoek, manufacturing sandals

Accounting

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Batu Lid operates in Windhoek, manufacturing sandals. The company uses a standard costing system, with a plan to produce 10,000 pairs of sandals each month this year. The following standard costs apply: Account Amount per pair N$ Selling Price per unit 60 Leather (200 MM) Labour (0.5 hours) 15 Variable overheads (Based on materials) 5 The company also budgets for fixed overheads of N$50,000 per month, absorbed by labour hours. The following are the company's actual results for May 2021: Number of pairs manufactured 10,000 N$ Leather Purchased (2,500 metres) 80,000 Direct Labour (4,850 hours) 94.575 Variable overheads 45,000 Fixed overheads 46,000 Additional Information 1. There was no inventory at the beginning of the month. 2. An analysis of the production records shows that only 2,050 meters of Leather were issued to production. 3. Batu Ltd uses the absorption costing method to present their financial information. 4. The company recorded sales of all 10,000 units, at a total of N$650,000 Required: Calculate the labour usage variance Indicate with an Aif variance is Adverse or with an F if variance is Favourable NB: You are not required to enter the unit or currency symbol. Enter your answer with no spaces between characters. For example: 1000A Answer: