QUESTION 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-inProgress Control. Account. Details from the standard product costs and the budgets are as follows: Aye Bee See Standard direct labour hours per unit 8 5 9 Budgeted monthly output in units 4,000 3,000 2,000 Budgeted production overhead per month: Variable 178,750 . Fixed 276,250 Total ' 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 overhead variance for last month. Analyse each of them into ape}. (14- (b) Prepare the 2 separate overhead control accounts for last month subvariances