In August, the idle capacity variance of ZYNC Inc. was zero, and the spending variance was P6,000 unfavorable. In September, the idle capacity variance was P8,000 unfavorable, but the spending variance was zero. In August, the actual overhead expense was P70,000 for an output of 8,000 tons. September's expense was P56,000 and output was 6,000 tons. In October, output was 9,000 tons, and the actual overhead expense was P71,000.

Required:
1. What is the budgeted FOH (estimated) for 9,000 tons?
2. How much is the applied FOH in October?
3. What is the spending variance in October?
4. What is the idle capacity variance in October?

Answer rating: 100% (QA)

Since the idle capacity variance for August is zero the normal pr... View the full answer