Required: (i) Variable manufacturing overhead spending and efficiency variances

(ii) Fixed manufacturing overhead spending and volume variances

Q2. In Tasmania Manufacturing's costing system, both variable and fixed manufacturing overhead are allocated to products based on standard direct manufacturing labourhour S (DLH). The company had the following standards for its manufacturing costs for 202 0: Input Cost per output un it $17.50 Direct materials Direct manufacturing labour Manufacturing overhead Variable 3.5 kg at $5 per kilogram 5.5 hours at $15 per hour $825.00 $6 per DLH $8 per DLH Fixed $33.00 $44.00 $177.00 Standard manufacturing cost per output unit Budgeted annual production for 2020 was 96,000 units. The denominator level for total manufacturing overhead per month in 2020 is 44,000 direct manufacturing labour-hours, and the flexible budget for July 2020 was based on this denominator level. The records for July indicated that the actual production was 7,500 units and shows the following: Direct material purchased 25,000 kg at $5.20 per kg Direct material used 23,500 kg Direct manufacturing labour 40,200 hours at $14.60 per hour Variable manufacturing overhead incurred $250,000 Fixed manufacturing overhead incurred $320,000