Question 3 Vartance Anglysts a) Borealis Electronics has the following standards and flexible budget Standard variable overhead rate labour hour Standard quantity of direct labour output Budgeted fixed overhead (based on 25,000units) Budgeted output Standard cost per unit: Variable overhead Fixed overhead data: RM6.00 per direct sti 2 hours per unit of RM100, 000 25,000 units RM 12.00 RM4.00 RM 16.00 Actual results for October are given below: Actual output Actual variable overhead Actual fixed overhead Actual direct labour Required: Calculate the following variances and indicate whether each is favorable or unfavorable: i. Variable overhead spending, efficiency and total variance. (6 marks) ii. Fixed overhead budget, volume and total variance. (6 marks) 30,000 units RM360, 000 RM106, 000 56,000 DLH