Problem 8 (Overhead Variances): Batangas Corporation has a pre-determined overhead rate of P10.00 per machine hours based on total overhead budget for the year which is estimated to be at P4,000,000. The company has also determined that the standard variable overhead rate per machine hour is P6.00 and a unit requires 3 machine hours. Some of the actual data for the year are as follows: Total units produced 200,000 Total machine hours 640,000 Total Variable Overhead Costs P 3.540.000 Total Fixed Overhead Costs P 1,630,000