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Question - Information on Wood Company's overhead costs for the January production activity is as follows:
Budgeted fixed overhead P75,000
Standard fixed overhead rate per DLH P3
Standard variable overhead rate per DLH P6
Standard DLH allowed for actual production 24,000
Actual total overhead incurred P220,000
Wood Company has a standard absorption and flexible budgeting system, and uses the two-variance method (two-way analysis ) for overhead variances. Determine the volume (denominator) variance for January?
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