3 Ayebeecee Ltd makes only 3 products using one production department in which overheads are absorbed on a direct labour hour basis. A system of integrated standard absorption costing is in operation using 2 separate overhead control accounts, one for variable and one for fixed. All sub- variances are entered in these control accounts before transferring the standard absorptions to the Wrok-in-Progress Control Account. Details from the standard product costs and the budgets are as follows: Standard direct labour hours per unit Budgeted monthly output in units Budgeted production overhead per month: Aye 8 Bee Cee 4,000 5 3,000 9 2,000 Variable Fixed Total 178,750 276,250 455,000 Actual results for last month were as follows: Aye Bee Cee Units produced 3,895 3,298 2,150 Actual direct labour hours 68,500 Actual variable overheads 186,750 Actual fixed overheads 279,250 Total 466,000 REQUIRED (a) Calculate the total variable overhead variance and the total fixed overhead variance for last month. Analyse each of them into appropriate sub-variances. (b) Prepare the 2 separate overhead control accounts for last month. (14 marks) (6 marks) (Total 20 marks) (LCCI Series 3: 1994)