Reference no: EM132928129
Shani Ltd manufactures product C1009T and provides the following information for the lastmonth:
Budgeted figures:
Variable manufacturing overheads R20 000
Fixed manufacturing overheads R48 000
Labour hours 4 000
Expected production 1 000 units
Actual results:
Variable manufacturing overheads R19 135
Fixed manufacturing overheads R49 880
Labour hours worked 4 300
Actual production 1 050 units
Required:
Problem 1: Calculate each of the following variable manufacturing overheads variances:
1.1 Efficiency variance
1.2 Expenditure variance
1.3 Total variable overheads variance
Problem 2: Calculate each of the following fixed manufacturing overheads variances:
2.1 Expenditure variance
2.2 Volume variance
2.3 Total fixed overheads variance