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Madonna Company uses a standard cost system for its production process. Madonna Company applies overhead based on direct labor hours. The following information is available for July:
Standard:
Direct labor hours per unit = 2.20
Variable overhead per hour = Php2.50
Fixed overhead per hour (based on 11,990 DLHs) = Php3.00
Actual:
Units produced = 4,400
Direct labor hours = 8,800
Variable overhead = Php29,950
Fixed overhead = Php42,300
Problem 1: Using the two-variance approach, what is the controllable variance?
a. Php21,650 U
b. Php16,480 U
c. Php5,775 U
d. Php12,080 U
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