question archive Basti Company uses standard cost system and prepared the following budget at normal capacity for the month of January: Direct Labor Hours 48,000 Variable Factory Overhead P96,000 Fixed factory Overhead P216,000 Total factory overhead per DLH P6
Basti Company uses standard cost system and prepared the following budget at normal capacity for the month of January: Direct Labor Hours 48,000 Variable Factory Overhead P96,000 Fixed factory Overhead P216,000 Total factory overhead per DLH P6
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Basti Company uses standard cost system and prepared the following budget at normal capacity for the month of January:
Direct Labor Hours 48,000
Variable Factory Overhead P96,000
Fixed factory Overhead P216,000
Total factory overhead per DLH P6.50
Actual data for January were as follows:
Direct labor hours worked 44,000
Total factory overhead P294,000
Standard DLH allowed for capacity attained 42,000
Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January?
a. P6,000 favorable
b. P27,000 unfavorable
c. P18,000 favorable
d. 21,000 unfavorable
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