Ferguson Farrar Limited is a manufacturing company. For the month of April 20X3 it budgeted for 4000 units of production, each to use 1.5 hours of machine time. Production overhead absorption rates were budgeted as follows:

 The actual level of production in the month was 4200 units. The original production overhead budget, the flexed budget and the actual expenditure are shown in the following table:

 Calculate:

a) the variable production overhead variance

b) the fixed production overhead variance.

Variable production overhead = 4 per machine hour. Fixed production overhead = 8 per machine hour.