Opal Limited operates a standard costing system which provides the following data relating to period 1 of 20X1: Variable overhead:

Budget	RM140, 000
Actual Fixed overhead:	RM126, 750
Budget	RM30, 000
Actual	RM31, 250
Budgeted production	20,000 units
Production time:	Hours
Budget	100, 000
Actual	90, 000

The production achieved in Period 1 was 18, 800 units.

Calculate:

1. Fixed overhead variance
2. Fixed overhead expenditure variance
3. Fixed overhead volume variance
4. Variable overhead variance
5. Variable overhead efficiency variance
6. Variable overhead expenditure variance

Question 3

The standard production costs per unit of a company’s single product in a period were:

Direct materials	RM
M01 6 kg at RM3 per kg	18.00
M02 4 meters at RM2 per meter Direct labour	8.00
Grade A 4 hours at RM8 per hour	32.00
Grade B 2 hours at RM10 per hour	20.00
Fixed overheads	22.00

100.00

Budgeted production for this period was 1, 100 units.

Actual production and costs relating to this period were as follows:

Production 1, 200 units

Direct materials Purchases:

M01 7, 320 kg purchased at a total cost of RM22, 960

M02 4, 680 meters purchase at a total cost of RM9, 160

Issues to production

M01 7, 100 kg

M02 4, 600 meters

Direct labour

Grade A 4, 750 hours worked at a total cost of RM37, 500

Grade B 2, 500 hours worked at a total cost of RM26, 500

Fixed production overheads incurred: RM24, 000

At the beginning of the period, the following quantities of raw material were in stock:

M01 200kg

M02 120 meters

There were no stocks of work-in-progress at the beginning or end of the period.

The company’s policy is to extract price variances at the time of purchase.

Required:

For the period, calculate the total variances:

1. Direct material price and usage (for each type of raw material)
2. Direct labour rate and efficiency (for each grade of labour)
3. Fixed overhead expenditure

Question 4

Comberton plc manufactures a single product. The budget for 202X includes the following:

Monthly sales/ production	400 units
Standard selling price per unit	RM285
Standard cost per unit	RM248

In Month 4, the actual results were as follows:

Sales/ production 390 units

Sales revenue RM111, 930

Total cost RM96, 330

Required:

Calculate the following variances for Month 4:

1. Sales price variance
2. Sales volume profit variance
3. Total cost variance
4. Profit variance