XYZ Ltd forecasts its overhead expenditure for a period as under. `3,00,000 for 10,000 hours `2,75,000 for 9,000 hours `2,50,000 for 8,000 hours The normal volume of activity is 10,000 hours. During a...

XYZ Ltd forecasts its overhead expenditure for a period as under. `3,00,000 for 10,000 hours `2,75,000 for 9,000 hours `2,50,000 for 8,000 hours The normal volume of activity is 10,000 hours. During a period, 8,750 hours were utilised for a total overhead expenditure of `2,87,500, of which fixed overheads totalled `52,500. The utilisation of labour-hours should have been less by 5 per cent. How will you analyse the overhead variance?