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The Six-C Corporation uses a standard costing system in which variable factory overhead is assigned to production on the basis of the number of machine setups. The following data pertain to one month's operations:
Manufacturing overhead cost incurred - P70,000;
Total Variable Overhead variance - P4,550 favorable;
Standard machine setups allowed for actual production -3,550;
Actual machine setups incurred - 3,500.
Problem A. The standard variable overhead rate per machine setup is:
Problem B. The variable overhead spending variance is:
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