• Relevant Company had the following flexible budget for 2003 at 100 percent capacity of 30,000 direct labor hours.

Direct materials P800,000

Direct labor 600,000

Variable manufacturing overhead 360,000

Fixed manufacturing overhead 288,000

What is the total manufacturing overhead application rate if the Relevant Company has to operate at 80 percent of the stated capacity?

• Silver Company has a standard of 15 parts of Component R costing P1.50 each. Silver purchased 14,910 units of R for P22,145. Silver generated a P220 favorable price variance and a P3,735 favorable usage variance. If there were 
• no changes in the component of inventory, how many units of finished product were produced?

• Arlene had an P18,000 unfavorable volume variance, a P25,000 unfavorable variable overhead spending variance, and P2,000 total under applied overhead. The fixed overhead budget variance is ?