How's Business uses a standard costing system.Management budgets for 200 units to be produced per period.Fixed factory overhead at this level is $15,000.The standard costs per unit are as follows:

The following costs were incurred in manufacturing 240 units during the period:

Required:

a. Calculate the variable spending and efficiency variances.(2.5 marks)

b. Calculate the fixed budget and volume variances. (2.5 marks)

Label variances as favourable or unfavourable and show all workings.