Sawdust Ltd manufactures a single product, a laminate bulk product which is sold to a business customer for further processing. The standard cost of a block of the intermediate product is £197 made up as follows:
£

Direct materials 12 kilograms at £6 per kg 72.00
Direct labor 5 hours at £5.50 per hour 27.50
Variable overheads 5 hours at £7.50 per hour 37.50
Fixed overheads 5 hours at £12 per hour 60.00
197.00
The standard selling price of the product is £280. The monthly budget projects
production and sales of 750 units. The company operates an absorption costing system
and recovers overhead through a Direct Labour Hour basis.
Actual figures for the month of December 2018 are as follows:
Sales 730 units at £270 per unit
Production 730 units
Direct Labour 3,750 hours costing £21,600
Direct materials 7,300 kgs costing £38,690
Variable overheads £25,000
Fixed overheads £42,000

You are required to:
(a) Calculate the following variances and explain why such variances may arise:
i) Total Fixed overhead
ii) Fixed overhead expenditure
iii) Fixed Overhead Volume
iv) Fixed overhead volume capacity
v) Fixed overhead volume efficiency
vi) Variable overhead expenditure
vii) Variable overhead efficiency