8 A company that absorbs fixed overheads on the basis of standard hours provides the following information relating to its fixed overheads:

Budgeted standard total fixed overhead £200,000 Budgeted standard hours 8,000 Actual fixed overhead £194,000 Actual standard hours 8,200 From the above information, what are the fixed overhead expenditure and volume variances?

(a) Expenditure variance £8,000 adverse, Volume variance £5,000 adverse

(b) Expenditure variance £11,000 favourable, Volume variance £5,000 adverse

(c) Expenditure variance £6,000 favourable, Volume variance £200 favourable

(d) Expenditure variance £10,000 adverse, Volume variance £15,000 favourable