17.9 Ferguson Farrar Limited is a manufacturing company. For the month of April 2013 it budgeted for 4000 units of production, each to use 1.5 hours of machine time. Production overhead absorption rates were budgeted as follows:

Variable production overheads: £4 per machine hour Fixed production overheads: £8 per machine hour The actual level of production in the month was 4200 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 24 000 25 200 26 250 Fixed production overheads 48 000 50 400 48 750 72 000 75 600 75 000 Required:

i) Calculate the total variable production overhead variance ii) Calculate the total fixed production overhead variance.