Topic: Problem: Standard Costing (Overhead Variances) The XYZ Bakery uses a standard cost system for its production of fruitcakes. Fruitcake is produced by mixing up two major ingredients, Flour and Sugar, with water, flavorings and fruits; and by adding a third ingredient which are eggs. All ingredients are inventoried per cup (for ease of accounting). Fruitcakes are sold as a loaf, and to produce one loaf, 3 cups of cake mixture is needed. Materials standards and costs for the production of 500 cups of output are: Question 1: Question 2: Ingredients Cups Cost Peso per Amount Amount Cup Flour 220 15 3,300.00 Pesos Sugar 180 20 3,600.00 Pesos Eggs 150 10 1,500.00 Pesos Input 550 8,400.00 Pesos Output 500 To convert 550 cups of ingredients into 500 cups of finished batter (the cake mixture before it is baked) requires 1,000 direct labor hours at P25 per direct labor hour. Factory overhead is applied on a direct labor hour basis. The monthly factory overhead budget for a normal capacity level of 12,000 direct labor hours is as follows: Variable Overhead Fixed Overhead Total 20,000 35,000 55,000 Pesos Pesos Pesos Actual data for the month of November follows: The bakery has been able to produce 1,500 loaves of fruitcake, with cost as follows: Direct Labor Variable Overhead Fixed Overhead 10,500 hours at P31.25 per hour 328,125 Php 20,000. Php 34,000 Questions Compute the Factory Overhead Spending Variance using the three variance method.. Indicate whether the variances are favorable or unfavorable. Note: BOTH answers must be correct to get full credits. Compute the Factory Overhead Efficiency Variance using the three variance method. Indicate whether the variances are favorable or unfavorable. Note: BOTH answers must be correct to get full credits. Possible Scores 3.5 3.5 uestion 3: Question 1: Question 2: Question 3: Compute the Factory Overhead Production Volume Variance using the three variance method. Indicate whether the variances are favorable or unfavorable. Note: BOTH answers must be correct to get full credits. Write Final Answers Below 3 Scores