PROBLEM 1 Issy Company ends the month with a volume variance of P6,360 unfavorable. If budgeted fixed overhead was P480,000, overhead was applied on the basis of 32,000 budgeted machine hours and budgeted variable factory overhead was P170,000. What was the actual hours used for the month? PROBLEM 2 Gigil Company has asked you to reconstruct their record after a fire. You were given the following variances: Favorable Spending variance, P400,000; Unfavorable Variable efficiency variance, P200,000; Favorable Volume variance, P40,000. Total fixed overhead is P200,000 at normal capacity. The company's standard variable overhead is P40 per direct labor hour. In the given period, the company incurred a total overhead cost of P2,400,000. Compute for the standard factory overhead rate.