A manufacturing company has provided you with the following data, which relate to component RYX for the period which has just ended:

Overheads are absorbed at a rate per standard labour hour.
(a) (i) Calculate the fixed production overhead cost variance and the following subsidiary variances:
Expenditure
Efficiency
Capacity
(ii) Provide a summary statement of these four variances.
(b) Briefly discuss two examples of interrelationships between the fixed production overhead efficiency variances and the material and labour variances

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Budget Actual Number of labour hours Production units Overhead cost (all fixed) 8 400 1200 £22260 7980 1100 £25536