Willo ltd has budgeted to produce 2,750 articles in 22,000 hours, with fixe overheads of $8,000 and variable overheads of $5,000. The company production during the period of the
budget was 2,700 articles in 21,500 working hours with fixed overheads costing $7,000 and
variable overheads $9,000.
Required:
Calculate the following variances:
a) Overhead variance (3 Marks)
b) Fixed production overhead variance (1 Mark)
c) Variable production overhead variance (1 Mark)
d) Fixed production overhead expenditure variance (1 Mark)
e) Fixed production overhead volume variance (1 Mark)
f) Fixed cost productivity variance (1 Mark)
g) Capacity variance (2 Marks)

Answer rating: 100% (QA)

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