A manufacturing unit using Standard costing system and the following information was obtained from its records: Standard Actual Production 4,800…

(i) Variable Overhead Variance: = Standard Overhead for Actual Production - Actual Variable Overhead = (14,400 / 4,800 units) x 4,560 units - 14,400 = 13,680 - 14,400 = 720 (A) (ii) Fixed Overhead Variance: = Absorbed Fixed Overhead - Actual Fixed Overhead = (₹ 48,000 / 4,800 units x 4,560 units) -46,800 = 45,600 -46,800 = 1,200 (A) (iii) Fixed Overhead Expenditure Variance: = Budgeted Fixed Overhead – Actual Fixed Overhead = 48,000 -46,800 = 1,200 (F) (iv) Fixed Overhead Volume Variance: = Absorbed Fixed Overhead – Budgeted Fixed Overhead = (₹ 48,000 / 4,800 units x 4,560 units) -48,000 = 45,600 -48,000 = 2,400 (A) (v) Fixed Overhead Calendar Variance: = (Actual Days - Budgeted Days) x Standard rate per day = (27 days – 25 days) x 48,000 / 25days = 3,840 (F)