The Numas Co. Ltd prepared the following overhead budget for 1984:

1984 Budget (1) Output: 40,000 units (160,000 labour hours)
(2) Variable overhead £400,000 (3) Fixed overhead £480,000 T he actual output for the period was 39,000 units which took 162,000 labour hours, and actual variable and fixed overhead amounted to £380,000 and £490,000, respectively.
Required:

(a) Prepare a budget showing overhead costs per unit.

(b) Calculate the variable and fixed overhead absorption rates.

(c) Calculate and explain the significance of as many overhead variances as possible.