A firm uses machine hours to allocate fixed overhead. During the period, budgeted fixed overhead is Rs. 30000. The budgeted machine hours is 100 hours for budgeted volume of 1000 units. The firm produced 1200 units consuming 150 hours and spent Rs. 28000 towards fixed overhead.

(a) The fixed overhead spending variance is:

Rs. 17000 favorable

Rs. 17000 adverse

Rs. 2000 favorable

Rs. 8000 favorable

(b) The fixed overhead volume variance is

Rs. 15000 Favorable

Rs. 15000 Adverse

Rs. 17000 Favorable

Rs. 17000 Adverse