The Pangasinan Company has a standard costing system. The following data are available for January: I....

 

Transcribed Image Text:

The Pangasinan Company has a standard costing system. The following data are available for January: I. Actual variable manufacturing overhead: P25, 500 II. Actual direct labor hours worked: 5, 800 III. Variable overhead spending variance: P600 favorable IV. Variable overhead efficiency variance: P2, 475 unfavorable V. Variable overhead is assigned to production on the basis of direct labor hours. Note: F denotes favorable and U denotes unfavorable The total variable overhead variance for January is a. P3, 075 F. b. P3, 075 U. C. P1, 875 F. d. P1, 875 U. The Pangasinan Company has a standard costing system. The following data are available for January: I. Actual variable manufacturing overhead: P25, 500 II. Actual direct labor hours worked: 5, 800 III. Variable overhead spending variance: P600 favorable IV. Variable overhead efficiency variance: P2, 475 unfavorable V. Variable overhead is assigned to production on the basis of direct labor hours. Note: F denotes favorable and U denotes unfavorable The total variable overhead variance for January is a. P3, 075 F. b. P3, 075 U. C. P1, 875 F. d. P1, 875 U.