Question
Andrew Company Andrew Company uses a standard cost system for its production process. Andrew Company applies overhead based on direct labor hours. The following information
Andrew Company Andrew Company uses a standard cost system for its production process. Andrew Company applies overhead based on direct labor hours. The following information is available for July:
Standard:
Direct labor hours per unit 2.20
Variable overhead per hour P2.50
Fixed overhead per hour P3.00 (based on 11,990 DLHs)
Actual:
Units produced 4,400
Direct labor hours 8,800
Variable overhead P29,950
Fixed overhead P42,300
8. Refer to Andrew Company. Using the four-variance approach, what is the volume variance?
9. Refer to Andrew Company. Using the three-variance approach, what is the spending variance?
10. Refer to Andrew Company. Using the three-variance approach, what is the efficiency variance?
11. Refer to Andrew Company. Using the three-variance approach, what is the volume variance?
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