Reference no: EM132928117

Shani Ltd manufactures product C1009T and provides the following information for the last month:

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