HL Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50 Direct labor for 2 hours @ P8/hr is

HL Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50 Direct labor for 2 hours @ P8/hr is P16 Manufacturing overhead for 2hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The fixed overhead volume variance must be? The total variance related to efficiency of production operations must be?

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