Question 1 Safety Products (Pvt.) Limited (SPL) is engaged in the manufacturing of safety products for the construction industry. The following production information, for further analysis, has been provided by SPL: Fixed and variable overheads are absorbed on the basis of direct labour hours, which are estimated to be 15,750 hours per month. Budgeted sales of SPL is 10,500 units at a price of Rs. 1,210 per unit and the actual sales revenue of the company is Rs. 12,540,000 for 9,500 units. Required: (a) Calculate the following variances: (i) Sales price variance (ii) Sales volume profit variance (iii) Material price variance (iv) Materials usage variance (v) Labour rate variance (vi) Labour efficiency variance (vii) Variable overtead expenditure variance (viii) Variable overhead efficiency variance (b) Calculate the following fixed overhead variances. (i) Fixed overhead expenditure variance (ii) Fixed ovemead volume variance (iii) Fixed overhead volume efficiency variance (iv) Fixed overhead volume capacity variance