The Serenata Manufacturing Company operates using a standard cost system. The flexible factory overhead budget is presented below: Test V 90% 95% 100% Variable expenses Fixed expenses Total $25,200...

Extracted text: The Serenata Manufacturing Company operates using a standard cost system. The flexible factory overhead budget is presented below: Test V 90% 95% 100% Variable expenses Fixed expenses Total $25,200 P20,000 P26,600 P20,000 P28,000 P20,000 P48,000 P45.200 P46,600 100% column is regarded as normal capacity production of 24,000 hours of work with a normal standard factory overhead rate of P2.00 per hour. During the period covered the factory worked 22,560 actual hours doing work for which 22,800 hours were allowed. Actual factory overhead during the period totaled P47,500. Required: An analysis of the factory overhead variances using the two-variance method.