Problem 11 (Overhead Variance): Bicol Corporation's predetermined overhead rate is P20 per machine hours of which 60% is variable. The standard machine hour per unit produced is 0.50 hours while the company's budgeted production at the beginning of the year is 500,000 units. The following variances relating to overheads were computed at the end of the period recently ended: Efficiency Variance - P 114.000 Variable unfavorable Spending Variance - 236.000 Variable unfavorable Budget Variance - Fixed 100,000 unfavorable Volume Variance - 100,000 Fixed unfavorable