Fixed Overhead Variance Budgeted Fixed Overhead Cost Actual Units Produced Budgeted Production Units Actual Fixed Manufacturing Overheads Standard Cost per unit of Allocated Fixed Manufacturing Overheads Under Variable Costing System: Expenditure Variance = Budgeted Fixed Overhead Cost - Actual Fixed Overhead Costs -155 000 Unfavourable Under Absorption Costing System: Expenditure Variance = Actual Fixed Overhead incurred - Budgeted Fixed Overhead for a normal month -1000 Unfavourable 100 000 9 000 10 000 255 000 10 The standards are as follows: Inputs Direct Materials (grapes) Direct Labour (hrs) Variable Overheads (hrs) Allocated Fixed Manufacturing Overheads (hrs) Total Standard Unit Cost (To create One Unit [bottle of wine]) STANDARD COST CARD Standard Quantity or Hours Standard Price or Rate 1,5 6232 Budgeted Production Units (Bottles) Actual Units (Bottles) Produced: Budgeted Fixed Manufacturing Overheads 10 000 9 000 100 000 Actual Costs are as follows: 5 5655 Standard Cost per Unit 2250 24 12 15 10 61 Quantity Total Cost Unit Cost Direct Materials (grapes) 50 000 100 000 2 Direct Labour 40 000 300 000 7,5 Variable Manufacturing Overheads: 25 000 112 500 4,5 Fixed Manufacturing Overheads (actual) 255 000