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Mila Co. budgeted factory overhead at P600,000 based on budgeted 15,000 labor hours. The company allows 90 minutes of labor for every unit of product.

Mila Co. budgeted factory overhead at P600,000 based on budgeted 15,000 labor hours. The company allows 90 minutes of labor for every unit of product. In producing 10,200 units, the company consumed 16,150 labor hours and incurred factory overhead of P613,700.

Required: Analyze the factory overhead variance using

1. two variance method

2. three variance method.

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