below: EXERCISE 11-16 A flexible budget of factory overhead for the Nancy Corporation is summarized PERCENTAGE OF NORMAL CAPACITY (100%) Variable overhead Fixed overhead Total overhead 70% P168,000 120,000 P288,000 80% 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. 468 EXERCISE 11-15 The Minda Company has prepared a flexible budget of factory overhead for the year. A summarized portion of the budget is given below: PERCENTAGE OF NORMAL CAPACITY(100%) Variable overhead Fixed overhead Total overhead 80% P276,000 280,000 P556,000 90% P310,500 280,000 P590,500 100% P345,000 280,000 P625,000 The company has budgeted 10,000 machine hours at the normal capacity level. Five(5) units of the product should be manufactured each machine hour. The company actually produced 40,000 units of the product during 2018 in 9,000 hours. Actual overhead for the year amounted to P601,500. 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.