Hope Corporations standard cost system contains the following overhead costs, computer based on a monthly normal volume of 25,000 units or 50,000 direct labor hours:

Variable Factory OverheadP12 per unit

Fixed Factory Overhead8 per unit

Total20

The following information pertains to the month of april 2019:

Actuak FOH costs incurred:

VariableP316 680

FixedP225 000

Actual Production26 000 units

Actual direct labor hors worked54 600 hours

Required:

a. The total FOH ciost variance is:

AFOH

less: Standard FOH

FOH Variance

b. Compute the controllable variance and volume variance using the two-way analysis.

AFOH

Less: BASH

Controllable Variance

BASH

Less: Standard FOH

Volume Variance

C. Compute the budget or spending variance, efficiency variance and volume variance using the three-way analysis.

AFOH

Less: BAAH

Spending Variance

BAAH

Less: BASH

Efficiency Variance

BASH

Less: Standard FOH

Volume Variance

d. The variable overhead variance amounts to:

e. The variable overhead spending variance is:

f. The variable overhead efficiency variance is: