A. Assume the variance is material, what is the variance share of the Finished goods inventory acc?B. Assume the variance is material, what is the variance share of the Work in Process account? Jose Corp makes bottles using the latest automated technology. The company applies FOH cost to producton the basis of machine hours. The following are estimate used to determine factory overhead rateat the start of the yearMachine hours150,000Factory Overhead Cost1,800,000The company cost records shows the following actual cost incurred for the year,Machine hours120,000Factory Overhead Cost1,700,000Raw Materials 60,000Work in Process (Includes FOH applied of P72,000)200,000Finished Goods (includes FOH applied of P360,000)1,000,000Cost of Goods Sold (includes FOH applied of P1,008,000) 2,800,000

Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Answered: A. Assume the variance is material,…

A. Assume the variance is material, what is the variance share of the Finished goods inventory acc? B. Assume the variance is material, what is the variance share of the Work in Process account?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 14P: Abbey Products Company is studying the results of applying factory overhead to production. The...

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