i)Differentiate between variable costs and fixed costs

ii) The monthly recordings for output and maintenance costs for the past 12 months of XY Company have been examined and the following information has been extracted for the lowest and highest output levels:

Volume of production (units) Maintenance costs ($)

Lowest activity50 000220 000

Highest activity100 000320 000

Determine the variable cost per unit for the period

ITEM

BUDGETED

ACTUAL

Price

$10 per Kg.

$ 8 per Kg.

Quantity

200 Kgs.

150 Kgs.

Out put

100 Kgs.

80 Kgs.

Fixed Overheard cost

$ 3,000

$ 3,500

Selling Price per unit

$ 50

$ 65

Required:

a) Determine the following variance and advice:

(i) Sales Variance(SV)

(ii) Sales Volume Variance (SVV)

(iii) Sales Price Variance (SPV)

b) Determine the following variance and advice:

(i) Material Price Variance (MPV)

(ii) Fixed Overheard Expenditure Variance (FOEV)