Villa Company's standard cost system contains the following overhead costs, computed based on a monthly normal volume
Question:
Villa Company's standard cost system contains the following overhead costs, computed based on a monthly normal volume of 25,000 units or 50,000 direct labor hours:
Variable factory overhead P12 per unit
Fixed factory overhead 8 per unit
Total P20 per unit
The following information pertains to the month of April:
Actual factory overhead costs incurred:
Variable P316,680
Fixed P225,000
Actual production 26,000 units
Actual direct labor hours worked 54,600 hours
The total factory overhead cost variance of Villa is
Villa's variable overhead spending variance amounts to
Villa's variable overhead efficiency variance is
Villa's fixed overhead budget or spending variance amounts to
Villa's fixed overhead volume or capacity variance amounts to
Using the two variance method, Villa's controllable variance is