PROBLEM $4$: FACTORY OVERHEAD VARIANCE ANALYSIS BOADO Enterprises applies variable overhead at a rate of $P1\mathrm{.}50$ per direct labor hour and fixed overhead at a rate of $P1\mathrm{.}75$ per direct labor hour. The company budgets two direct labor hours for each of the $6,000$ units that are scheduled for production. BOADO incurred actual variable overhead totaling P $18,700$ and actual fixed overhead totaling P $21,500$ last year for the production of $5,900$ units. In addition, $11,800$ direct

labor hours were actually incurred.

Required:

Calculate the variable overhead efficiency variance

Calculate the variable overhead spending variance

Calculate the fixed overhead volume variance

Calculate the fixed overhead spending variance