Question: Mukwano (U) limited has planned to absorb variable overheads into its production at a rate of Ugx.500 per hour. Each unit is planned to take

Mukwano (U) limited has planned to absorb variable overheads into its production at a rate of Ugx.500 per hour. Each unit is planned to take half an hour to complete. Output stood at 6,000 units and 4.200 hours were paid for during the period, absorbing Ugx.2.520.000 overheads.

Compute variable overheads variances and comment on your results.

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