The Pinatubo Company makes and sells a single product and uses standard costing.During January, the company actually
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Question:
The Pinatubo Company makes and sells a single product and uses standard costing.During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product.The standard cost card for one unit of product includes the following:
Variable factory overhead:3.0 DLHs @ P4.00 per DLH.
Fixed factory overhead:3.0 DLHs @ P3.50 per DLH
For January, the company incurred P22,000 of actual fixed overhead costs and recorded a P875 favorable volume variance.
The budgeted fixed overhead cost for January is
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