Dickson has budgeted to produce 10,000 units of its single product in a period. It operates a standard costing system. The following information has been extracted from the product's standard cost card: Direct labour per unit 2% hours x 12.60 per hour Fixed production overheads 2% hours x 18.00 per hour The fixed production overheads are absorbed based on direct labour hours, The actual results for the period were as follows: Production 9,700 units Direct labour 26,160 hours Fixed production overheads 483,300 Required (a) Calculate the following variances for the period: (i) Fixed production overhead expenditure (2 marks) (ii) Fixed production overhead volume (2 marks) (iii) Fixed production overhead capacity (2 marks) (iv) Fixed production overhead efficiency (2 marks) (b) Provide a reconciliation of the fixed production overhead variances in (a). (2 marks) The following budgeted figures relate to a division of Dembele, for the coming year: (b) Provide a reconciliation of the fixed production overhead variances in (a). (2 marks) The following budgeted figures relate to a division of Dembele, for the coming year: 00 Sales (60,000 units x 20) 1,200 Costs: Variable (60,000 units x 8) 480 Fixed 420 Investment in the division 1,350,000 The company's cost of capital is 12% per annum. Required (c) For the coming year, calculate for the division: 3/8 (i) the return on capital employed (ROCE) (2 marks) (ii) the residual income (RI). (2 marks) The division has an opportunity to sell an additional 12,000 units per annum at a selling price of 18 per unit for the next four years. This would require an increase in investment of 300,000, which would be depreciated on a straight line basis over the four years with no residual value. Required (d) Calculate the revised ROCE and RI for the coming year if this opportunity is undertaken. (6 marks)