blue pty has a standard variable overhead rate of $5 per direct labour hr.The standard quality of direct labour per unit production is 3hrs .The companys static budget was based on 50 000 units .Actual results for the year are as follows

units produced 45000

direct labour cost 100 000

variable overhead 765000

what is the companys( a )static budget (b) flexible budget for the variable overhead cost 4 marks

what is the company overhead cost (a) spending variiance and (b) efficiency variance 4marks

regarding the companys actual results, flexible budget and static budget ,does have a small static budget variance always implies a good budgeting process? use calculation to support your argumet 7marks

Provide evidence and justify wether there has been a budgetary slack 6marks