Laura Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is P3,168,000, of which P864,000 is fixed overhead. The actual results for the year are as follows:

Units produced:                                               280,000

Direct labor hours                                            570,000

Direct labor rate                                               P9

Variable overhead                                           P2,320,000

Fixed overhead                                                                P872,000

Required: Determine the following:

1. predetermined fixed OH rate per hour
2. predetermined variable OH rate per hour
3. applied fixed OH 7. variable OH efficiency variance
4. fixed OH spending variance
5. fixed OH volume variance
6. variable OH spending variance