Andrew Company uses a standard cost system for its production process. Andrew Company applies overhead based on direct labor hours. The following information is available for July:

Standard:

Direct labor hours per unit 2.20

Variable overhead per hour P2.50

Fixed overhead per hour P3.00 (based on 11,990 DLHs)

Actual:

Units produced 4,400

Direct labor hours 8,800

Variable overhead P29,950

Fixed overhead P42,300

Andrew Company uses a standard cost system for its production process. Andrew Company applies overhead based on direct labor hours. The following information is available for July: Standard:

1.Using the three-variance approach, what is the efficiency variance?

2.Using the three-variance approach, what is the volume variance?

3.Using the two-variance approach, what is the controllable variance?

4.Using the two-variance approach, what is the noncontrollable variance?

5.Using the one-variance approach, what is the total variance?

Answer rating: 100% (QA)

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