1. SCM Company had P400,000 budgeted fixed overhead costs and based its standard on normal activity of 40,000 units. Actual fixed overhead costs were P430,000, actual production was 36,000 units, and sales were 30,000 units. The volume variance was

P30,000.

P40,000.

P70,000.

P77,777.

None of the above

2. A company has fixed costs of P150,000, a variable cost ratio of 60%, and a margin of safety ratio of 25%. Considering the given data, which of the following statements is not correct?

The company's profit ratio is 10%

Sales amounted to P375,000

Profit amounts to P50,000

The contribution margin amounts to P200,000

None of the above