MD Limited has furnished following information for the month of August, 2025: Standard Variable Overhead rate 3 per hour Standard Hours for per unit…

(i) Actual Hours Variable overhead efficiency variance: (Standard hours for Actual Production – Actual Hours) x Standard Rate {(15,560 x 5) - Actual Hours} x 3 = 11,400 F Actual Hours = 74,000 (ii) Actual Variable Overhead rate per hour Variable overhead expenditure Variance: Std. overhead for Actual hours - Actual Variable Overhead (74,000 x 3) – Actual Variable overheads = 37,000 (A) Actual Variable overhead = 2,59,000 Actual Variable Rate per hour = 2,59,000 / 74,000 = 3.5 per hour (iii) Variable overhead Cost Variance Variable overhead Efficiency Variance + Variable overhead Expenditure Variance 11,400 (F) + 37,000 (A) = 25,600(A) (iv) Fixed Overhead cost Variance Fixed overhead Cost Variance: (Absorbed Fixed Overheads) - (Actual Fixed Overheads) (SH × SR) – (AH × AR) (77,800 x 2) – 1,85,000 = 29,400 (A)