Reference no: EM132576499

Question - Lucky Company sets the following standards for 2003:

Direct labor cost (2 DLH @ P4.50) P 9.00

Manufacturing overhead (2 DLH @ P7.50) 15.00

Lucky Company plans to produce its only product equally each month. The annual budget for overhead costs are:

Fixed overhead P150,000

Variable overhead 300,000

Normal activity in direct labor hours 60,000

In March, Lucky Company produced 2,450 units with actual direct labor hours used of 5,050. Actual overhead costs for the month amounted to P37,245 (Fixedoverhead is as budgeted.)

Find the amount of overhead volume variance for Lucky Company?

Using the preceding data for Lucky Company, calculate the controllable overhead variance?