Insi Ltd manufactures product J7524G and provides the following information for the last month:

Budgeted figures: Variable manufacturing overheads R20 000

Fixed manufacturing overheads R48 000

Labour hours 4 000

Expected production 1 000

units Actual results:

Variable manufacturing overheads R19 135

Fixed manufacturing overheads R49 880

Labour hours worked 4 300

Actual production 1 050 units

Required:

1. Calculate the following variable manufacturing overheads variances (in Rands) and state if they are favourable or unfavourable:

1.1 Efficiency variance

1.2 Expenditure variance

1.3 Total variable overheads variance