Problem A company has a normal capacity of 120 machines, working 8 hrs per day of 25 days in a month. The fixed overheads are budget @1,44,000 per month. The standard time required to manufacture one...

Extracted text: Problem A company has a normal capacity of 120 machines, working 8 hrs per day of 25 days in a month. The fixed overheads are budget @1,44,000 per month. The standard time required to manufacture one unit of product is 4 hrs. The company worked 24 days of 840 machine hrs per day produced 5,305 units of output. The actual fixed overheads were 1,42,000. Compute : (i) Expenses variance,(ii) Volume variance,(iii) Total fixed overhead variance