The amount of budgeted overhead costs at normal capacity of P240,000 was divided by normal capacity of
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The amount of budgeted overhead costs at normal capacity of P240,000 was divided by normal capacity of 30,000 direct labor hours to arrive at the predetermined overhead rate of P8, comprised of a variable overhead rate of P5 and a fixed rate of P3. Actual overhead for December was P15,800 variable and P9,100 fixed and standard hours allowed for the product produced in December was 3,000 hours. The total overhead variance is
a.P900 Unfavorable
b.P4,900 Favorable
c.P900 Favorable
d.P4,900 Unfavorable
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