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PEPPERS Company uses standard costing

Accounting

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PEPPERS Company uses standard costing. Overhead is applied to products on the basis of standard direct labor hours for actual production. Data for PEPPERS follows:

Standard direct labor hours allowed for actual output:
110,000

Actual direct labor hours:
115,000

Direct labor hours budgeted in the master budget:
120,000

Budgeted total variable overhead cost:
P360,000

Actual variable overhead cost:
P328,000

A. Calculate the variable overhead rate.

B. Calculate the total variable overhead applied to production.

C. Calculate the variable overhead spending variance.

D. Calculate the variable overhead efficiency variance.

E. Calculate the total variable overhead variance.