Problem 4 (Overhead Variances): Batangas Corporation has expected to produce 80,000 units for the coming year which will require the utilization of 400,000 direct labor hours in total. The total budgeted overhead was determine to be at P 1,250,000 which is being composed of 60% variable overhead. An actual figure shows that only 75,000 units were produced during the year while utilizing the expected direct labor hours. The company incurred P 770,000 in variable overhead and P 510,000 in fixed overhead in relation to the actual production. Required: 1. What is the predetermined overhead rate per hour? What is variable overhead rate per hour? What is the fixed overhead rate per hour? 2. 3. How much is the overhead that will be applied in production for the period? How much is the under or over applied overhead during the period? 4. Analyze the total overhead variance using a four-way analysis Perform a two-way and three-way overhead analysis. 5.