Sica Company manufactures a single product that has a standard materials cost of P20 (4 units of materials at P5 per unit), standard direct labor cost of P9 (1 hour per unit), and standard variable overhead cost of P4 (based on direct labor hours). Fixed overhead is budgeted at P17,000 per month. The following data pertain to operations for the month of May: Materials purchased: 8,000 units costing P39,400 Materials used in production of 1,500 units of finished product: 6,200 units of materials Direct labor used: 1,500 hours costing P15,000 Variable overhead costs incurred: P5,960 Fixed overhead costs incurred: P17,500 Required: 1. Prepare a performance report for Sica for May using the following headings: 1. Actual Production Costs 2. Flexible Budget Costs 3. Flexible Budget Variances II. Compute the following variances (show calculations): 1. Materials usage variance 2. Labor rate variance 3. Labor efficiency variance 4. Variable overhead spending variance 5. Variable overhead efficiency variance 6. Fixed overhead budget variance III. Give one possible explanation for each of the six variances computed in part (II)