E Company uses standard costing and applied manufacturing overhead cost to units of product based on direct labor hours (DLHs). Budgeted and actual data relating to manufacturing overhead for last year appear below:

Applied fixed overhead cost P38,900

Denominator activity 20,000

DLH Standard hours allowed for one unit 1.2 DLH

Units produced 17,000

Fixed overhead volume variance $1,300 U

Required:

1. The budgeted fixed factory overhead cost was:
2. The standard direct labor hours allowed for the output was