17.20 Feltham Finch Limited is a manufacturing company. For the month of August 2013 it budgeted for 780 units of production, each to use 4 hours of machine time. Production overhead absorption rates were budgeted as follows:

Variable production overhead: £2.80 per machine hour Fixed production overhead: £7.60 per machine hour The actual level of production in the month was 760 units.

The original production overhead budget, the flexed budget and the actual expenditure are shown in the following table:

Original budget Flexed budget Actual £ £ £
Variable production overheads 8 736 8 512 8 476 Fixed production overheads 23 712 23 104 24 160 32 448 31 616 32 636 Required:
i) Calculate the total variable production overhead variance.
ii) Calculate the total fixed production overhead variance.