Calculate the following variances and indicate whether they are favorable or unfavorable.

5.3.5 Labour efficiency variance (4 Marks)

5.3.6 Fixed overhead spending variance (2 Marks)

Questro (Pty) Ltd Questro (Pty) Ltd manufactures security gates and makes use of a standard costing system. The following information relates to one of its products, Glide Max. The standard primary cost per unit is: R 75 90 Material A at R50 per m Material B at R90 per m Direct labour at R220 per hour Prime cost of production 110 275 Budgeted information for May 2021: Fixed overheads are budgeted at R60 per unit. Budgeted production and sales are 260 units per month. The projected selling price is R837.50 Actual figures for May 2021: R 21 037.50 22 000.00 Primary costs: Material A at R55 per m Material B at R80 per m Direct labour at R210 per hour Manufacturing overheads: Fixed 27 300.00 14 300.00 Additional information: 250 units were manufactured and sold during May. The actual selling price was R800 per unit. Source: Daniels, JC (2021)