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Morgan manufactures a product Z and provides the following information for the last month: Budgeted figures: Variable manufacturing overheads R20 000 Fixed manufacturing overheads R48

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Morgan manufactures a product Z 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 1. Calculate the following fixed manufacturing overhead overheads variances (in Rands) and state if they are favourable or unfavourable: 1.1 Expenditure variance 1.2 Volume variance 1.3 Total fixed overheads variance

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