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The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.
Variable manufacturing overhead costs per hour P5.5
Standard labor hours per unit of output 3.0
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual variable manufacturing overhead was P95,368.
Overhead is applied on the basis of direct labor hours.
Problem 1: How much is the variable overhead spending variance (no sign if unfavorable, negative if favorable)?
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