Two-Way Overhead Variances Karla Company uses an annual cost formula for overhead of P72,000 + P1.60 for
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Two-Way Overhead Variances
Karla Company uses an annual cost formula for overhead of P72,000 + P1.60 for each direct labor hour worked.For the upcoming month Karla plans to manufacture 96,000 units.Each unit requires five minutes of direct labor.Karla's budgeted overhead for the month is
A.P12,800C.P84,800
B.P18,800D.P774,000
Why the answer is P18,800? Put an explanation.
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