The following standard overhead costs were developed for one of the products of CLH Company: Variable overhead: 5 hours P4 per hour 20.00

Fixed overhead: 5 hours P15 per hour 75.00

Total standard overhead cost per unit P95.00

The following information is available regarding the company's operations for the period:

Units produced 20,000 Direct labor 115,000 hours

Overhead incurred:

Variable P437,500 Fixed P1,320,000

Budgeted fixed overhead for the period is P1,350,000, and the standard fixed overhead rate is based on expected capacity of 90,000 direct labor hours.

Required:

A. Calculate the variable overhead spending variance and indicate whether it is favorable or unfavorable.

B. Calculate the variable overhead efficiency variance and indicate whether it is favorable or unfavorable.

C. Calculate the fixed overhead spending variance and indicate whether it is favorable or unfavorable.

D. Calculate the fixed overhead volume variance and indicate whether it is favorable or unfavorable.