How do calculate the variances under three variance method

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Reference no: EM132690312

MAD Inc. produces a single product at the following standard factory overhead costs:

Fixed overhead (3 hours @P5/hr) P15

During the month, MAD Inc. produced 1,100 units and incurred the following overhead costs:

Variable overhead (3,250 hours @ P14.50/hr) P47,125
Fixed overhead - P16,000
Required:

Problem 1: Calculate the variances under:

Two variance method
Three variance method (SVV and SIE)
Four variance method

 

Reference no: EM132690312

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