below: A flexible budget of factory overhead for the Nancy Corporation is summarized PERCENTAGE OF NORMAL CAPACITY (100%) Variable overhead Fixed overhead Total overhead 70% P168,000 80% 120,000 P288,000 P192,000 120,000 90% 100% P216,000 P240,000 120,000 120,000 P360,000 P312,000 P336,000 Standard cost is used to measure managerial performance. According to the standards established, two(2) hours are required to produce one(1) unit of product. When operating at a normal capacity of 120,000 hours, 60,000 units of product should be manufactured. This year, 2018, the company produced 42,000 units of product in 96,000 hours. The total variable overhead for the year was P197,500, and the total fixed overhead amounted to P124,000. REQUIRED: 1. Rewrite the flexible overhead budget using the format on page 428. 2. Make an overhead variance analysis using the 3-way(2), 4-way, and 2-way methods. Standard time for one (1) pair x Normal production x Actual production HOURS Fixed overhead Variable overhead Total factory overhead FLEXIBLE OVERHEAD BUDGET Normal Overhead Normal Actual Standard Rate/Hour Time 1.2 hours Time Time 1.2 hours 2,500 prs. 2,800 prs. 3,000 3,200 3,360 P10.00 P30,000 P30,000 P30,000 40.00 120,000 128,000 134,400 P50.00 P150,000 P158,000 P164,400