Borrowdale Ltd uses standard costing system in the manufacturing of its products. The business produces sports equipment, one of its products, a fashionable cap, is widely distributed and sells well across the country. The business had budgeted sales and production of 20 000 caps and the standard cost per cap for the year ended 30 September 2019 is as follows:

Direct material 2m@ $5 per meter= $10.00

Direct labour 3hours @$12 per hour=$36

Variable production overheads 3 hours @$1 per hour=$3

This cap should sell for $70 each

Total fixed costs in the period were budgeted for $120 000, and were absorbed on the basis of labour hours worked.

Actual results were as follows:

40 000 meters of material were bought at a cost of $196 000, this produced 19 200 caps.

No inventory of the direct materials is held. Labour worked for 61 500 hours and the total labour cost was $694 000. Variable overheads in the period were $67 000.

The sales price was reduced to encourage higher sales volume, 19 500 caps were sold at an average price of $68 per cap with total fixed cost incurred during the period amounting to $127 000.

a) Calculate the fixed overhead expenditure variance and fixed overhead volume variance

b)Variable overhead expenditure variance and Variable overhead volume variance

c)Material price variance

d) Labour efficiency variance

e) Revenue Variance