Problem 1 Preston Well Company planned to produce 25,000 units of product and work 100,000 direct labor hours in 2017. Manufacturing overhead at the 100,000 direct labor hours level of activity was estimated to be: Variable manufacturing overhead P 700,000 Fixed manufacturing overhead 300.000 Total manufacturing overhead P1,000,000 At the end of 2017, 26,000 units of product were actually produced and 107,000 actual direct labor hours were worked. Total actual overhead costs for 2017 was P1,015,000. Instructions (a) Compute the total overhead variance. (b) Prepare a 2-way, 3-way, 4-way variance analysis Problem 2 The following standard product and cost data for 1,000 lbs of Product A are as follows:. Materials A B Standard Input Quantity (lbs) 800 200 200 1,200 Standard Proportion 800/1200 200/1200 200/1200 Standard Price P 0.25 0.40 0.10 Standard Cost P 200 80 20 P 300 ======= Material records for the month of August indicate: P 37,680 A B C- 157,000 lbs @ P 0.24 38,000 lbs @ P 0.42 36,000 lbs @ P 0.11 15.960 3,960 P 57,600 Actual production for August was 200,000 lbs. Required: Determine material price, mix and yield variance