Compute the company total cost variance

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Reference no: EM132834251

Question - Cape Town's budget for variable overhead and fixed overhead revealed the following information for an anticipated 40,000 hours of activity: variable overhead, P348,000; fixed overhead, P600,000. The company actually worked 43,000 hours, and actual overhead incurred was: variable, P365,500; fixed, P608,000.

Required -

a. Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget to help assess performance.

b. Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a flexible budget to help assess performance.

Reference no: EM132834251

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