Question $4.$ Lower Hutt Stationery Company manufactures cardboard folders. The company

has developed standard overhead rates based on a monthly capacity of $90000$ direct labour

hours $($DLHs$)$ as follows:

Standard costs per unit $($one box of folders$)$:

Variable overhead $(2$ hours @ $$6$ per DLH$)$

Fixed overhead $(2$ hours @ $$10$ per DLH$)$

During April, $45000$ units were budgeted for production; however, only $40000$ units were

produced. The following data relate to April:

Actual direct labour cost incurred was $$1567500$ for $82500$ actual hours of

work.

Actual overhead incurred totalled $$1371500,$ of which $$511500$ was variable

and $$860000$ was fixed.

Required:

i$.$ Calculate variable overhead spending variance.

ii$.$ Calculate variable overhead efficiency variance.

iii. Calculate fixed overhead budget variance.

iv$.$ Calculate fixed overhead volume variance.