a) Brett Lee Ltd applies variable factory overhead on the basis of direct labor hours (DLHs). The company has the following variable factory overhead standard to manufacture one cricket ball: 0.5 standard hours of labour per cricket ball at a variable overhead rate of $10.00 per DLH.

Last month 55 DLHs were worked to make 100 Cricket balls, and $539 was spent on variable factory overhead.

b)

Sonakshi Sinha Ltd manufactures Bollywood costumes and allocates fixed manufacturing overhead to the costumes on the basis of machine hours.

Budgeted info: Machine hours per costume: 0.75 hours

Number of costumes: 30,000

Fixed manufacturing overhead was budgeted at $20 per machine hour.

28,000 costumes were actually produced, and actual fixed overhead incurred was $410,000.

Calculate the fixed overhead expenditure and production volume variances and interpret the results.