Problem 5. Sportsman, Inc. produces different sizes of basketballs. The following costs were incurred during the year for PBA-sized basketball production. Materials Labor Actual Factory overhead Selling expenses General and Administrative expenses P81,250 (23% is indirect) 87,500 (27% is indirect) 70,000 (including indirect materials and indirect labor) 3,250 23,250 Sportsman applies overhead to production at 100% of direct labor cost. There were no work in process at the end of the year and there were no finished goods inventory at the beginning. 5,000 units were produced, and 90% of the units produced were sold. Required: 1. Compute the prime costs 2. Compute the conversion costs 3. Compute the total product costs 4. Compute the total period costs 5. Calculate the overhead variance and explain why it is favorable or unfavorable
Problem 5. Sportsman, Inc. produces different sizes of basketballs. The following costs were incurred during the year for PBA-sized basketball production. Materials Labor Actual Factory overhead Selling expenses General and Administrative expenses P81,250 (23% is indirect) 87,500 (27% is indirect) 70,000 (including indirect materials and indirect labor) 3,250 23,250 Sportsman applies overhead to production at 100% of direct labor cost. There were no work in process at the end of the year and there were no finished goods inventory at the beginning. 5,000 units were produced, and 90% of the units produced were sold. Required: 1. Compute the prime costs 2. Compute the conversion costs 3. Compute the total product costs 4. Compute the total period costs 5. Calculate the overhead variance and explain why it is favorable or unfavorable
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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