. Stream has prepared the following standard cost information for one unit of Product Beta.Direct materials4 kg @ $10/kg$40Direct labor2 hours @ $4 /hour$8Fixed overhead3 machine hours @ $2.5/machine hour$7.5 The fixed overheads are based on a budgeted expenditure of $75,000 and budgeted activity of 10,000 units, and the budgeted machine hours is 30,000 hours. The actual results for the period were recorded as follows:Production9000 unitsMaterials –33,600kg$336,000Labor---16,500 hours$68,500Fixed overheads$70,000 Required: a. Calculate the material usage variance(4 marks)；b. Calculate fixed overhead spending variance, fixed overhead volume efficiency variance（7 marks）；c. Explain the possible reasons for material usage variance. (4 marks）
. Stream has prepared the following standard cost information for one unit of Product Beta.Direct materials4 kg @ $10/kg$40Direct labor2 hours @ $4 /hour$8Fixed overhead3 machine hours @ $2.5/machine hour$7.5 The fixed overheads are based on a budgeted expenditure of $75,000 and budgeted activity of 10,000 units, and the budgeted machine hours is 30,000 hours. The actual results for the period were recorded as follows:Production9000 unitsMaterials –33,600kg$336,000Labor---16,500 hours$68,500Fixed overheads$70,000 Required: a. Calculate the material usage variance(4 marks)；b. Calculate fixed overhead spending variance, fixed overhead volume efficiency variance（7 marks）；c. Explain the possible reasons for material usage variance. (4 marks）
