Information on Wood Company's overhead costs for the January production activity is as

follows:

Budgeted fixed overhead

P

75,000

Standard fixed overhead rate per DLH

P

3

Standard variable overhead rate per DLH

P

6

Standard DLH allowed for actual production

24,000

Actual total overhead incurred

P220,000

Wood Company has a standard absorption and flexible budgeting system, and uses the

two-variance method (two-way analysis ) for overhead variances. The volume

(denominator) variance for January is