Reference no: EM132533744

Akyede Groups of Companies uses a standard cost system for its production process and applies overhead based on direct labour hours. The following information is available for May when Akyede produced 4,500 units:

Standard:

Direct labour hour per unit - 2.50,

Variable overhead per direct labour hour - GH¢1.75,

the fixed overhead per direct labour hour - GH¢3.10,

Budgeted variable overhead - GH¢21,875,

Budgeted fixed overhead - GH¢38,750.

Actual:

Direct labour hours - 10,000,

Variable overhead- GH¢26,250,

Fixed overhead- GH¢38,000.

Question 1: Calculate the total variable overhead cost and total fixed overhead cost variance, indicating the respective spending or expenditure variance and efficiency (volume) variance. show all workings clearly