Luna Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard costsystem allows 2 direct labor hours per unit produced. Overhead is applied using directlabor 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: Direct labor hours 280,000 570,000 Direct labor rate P9 P2,320,000 P872,000 Variable overhead Fixed overhead Required: Determine the following: 1. Fixed OH volume variance 2. Variable OH spending variance 3. Variable OH efficiency variance 4. Fixed OH spending variance

Luna Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard costsystem allows 2 direct labor hours per unit produced. Overhead is applied using directlabor 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: Direct labor hours 280,000 570,000 Direct labor rate P9 P2,320,000 P872,000 Variable overhead Fixed overhead Required: Determine the following: 1. Fixed OH volume variance 2. Variable OH spending variance 3. Variable OH efficiency variance 4. Fixed OH spending variance

Name: Luna Company calculates its predetermined rates using practical volum
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Description: Luna Company calculates its predetermined rates using practical volume, which is 288,000units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is appliedusing directlabor hours. The total budgeted overhead is P3,168,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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