1.1. A company uses an overhead absorption rate of K3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to K108,875 and 30.000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period? (Show your Working) [2 marks] 1.2. An organisation has the following total costs at two activity levels: Activity level (units) 16.000 22.000 Total costs (K) 135.000 170,000 Variable cost per unit is constant within this range of activity but there is a step up of K5,000 in the total fixed costs when the activity exceeds 17,500 units. What is the total cost at an activity of 20,000 units? (Show your Working) [2 marks] 1.3. A company's budgeted sales for last month were 10,000 units with a standard selling price of K20 per unit and a standard contribution of K8 per unit. Last month actual sales of 10,500 units at an average selling price of K19.50 per unit were achieved. What were the sales price and sales volume contribution variances for last month? (Show your Working) [2 marks]