Omega PLC manufactures a product for which the standard cost data are as follows:

The budget for the month of April was set at an output of 5000 units and a total cost of £235,000.
The actual output and costs for the month of April were as follows:

(a) Calculate the following variances and associated subvariances for April: total cost; Direct material; Direct labour; Variable overhead; Fixed overhead.

(b) Interpret the information provided by the fixed overhead variances in this case.

Transcribed Image Text:

Direct materials Direct labour Variable overhead Fixed overhead Standard cost Cost per input unit () Cost per unit of output () Units of input 3 kg 2 hours 2 hours 2 hours 10 5420 15 8 4 20 220 47