35.

(d)

Controllable Variance

36.(b) Noncontrollable Variance

37.(d)

Total Variance

= Actual Overhead - Budgeted Overhead Based on Standard Quantity

=P72,250.00-(4.400 unitsxP2.50/hrx2.20hrs/unit+P35,970)

=P(72,250-60,170)

=P12,080 U

= Budgeted OH/Standard Quantity-_Standard Overhead Applied

= (4,400 units x P2.50/hr x 2.20 hrs/unit + P35,970) -(4,400 units x P5.50/hrx 2.20 DLH/unit)

=P60,170

= Actual Overhead-Applied Overhead

=P72.250-(4,400x2.20x(P2.50+P3,000)

=P72,250-P53,240

38.(b)

Applied Factory Overhead (P5.20 x 175,000)

Less: Fixed factory overhead.

P910,000

450,000

Variable factory overhead P460,000

175,000

Divided by: Expected level of production

Variable overhead cost per unit

2.63(b)

39.(c)
Since factory overhead were given in terms of two levels of activity and to segregate variable from fixed
the high-low method would be used:

Variable OH rate per unit = Difference in Amount

Difference in Activity

= (P225,000-P175,000)

(75,000-50,000)

= P2 per unit

Fixed Factory Overhead:

Total budgeted factory overhead

Less:Variable Factory Overhead

P2x75,000.

P2x50,000.

Fixed Factory Overhéad

P225,000

150,000

P.75.000

P175,000

100,000

P 75.000

Therefore, the Budgeted Factory Overhead Rate based on forecasted production of 60,000 units
amounted to:

Variable OH per unit

Fxed OH per unit: P75,000 , 60,000.

P2.00

1.25

P3.25(c)
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Chapter 18