Reference no: EM132795511

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: