21. Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating shipping expenses. The company's shipments average 12 kilos per shipment. Shipping costs = P8,000 + (0.25 x kgs. shipped) Planned Actual Sales order 800 780 Shipments 800 820 Units shipped 8,000 9,000 Sales 240,000 288,000 Total kilograms shipped 9,600 12,300 The actual shipping costs for the month amounted to P10,500. The appropriate monthly flexible budget allowance for shipping costs for purposes of performance evaluation would be A. P10,250 B. P11,075 C. P10,340 D. P10,400 22. Universal Company uses a standard cost system and prepared the following budget at normal capacity for the month of January: Direct labor hours 24,000 Variable factory O/H $48.000 Fixed factory O/H $108,000 Total factory O/H per DLH $6.50 Actual data for January were as follows: Direct labor hours worked 22,000 Total factory O/H $147,000 Standard DLH allowed for capacity attained 21,000 Using the two-way analysis of O/H variances, what is the budget (controllable) variance for January? A. $3,000 F. B. $13,500 U. C. $9,000 F. D. $10,500 U. 23. ABC Company uses the equation P300,000 + P1.75 per direct labor hour to budget manufacturing overhead. ABC has budgeted 125,000 direct labor hours for the year. Actual results were 110,000 direct labor hours, P297,000 fixed overhead, and P194,500 variable overhead. What is the fixed overhead volume variance for the year? A. P35,000 U. B. P36,000 U. C. P2,000 F D. P3,000 F