The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing overhead budgeted at P16,920 and an estimated variable manufacturing overhead rate of P2.10 per hour. During April, actual production required 2,700 machine hours, with a total overhead of P7,800. What is the over/underapplied FOH? a. P720 overapplied FOH b. P720 underapplied FOH c. P14,790 overapplied FOH d. P14,790 underapplied FOH

Q: Greedy Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of…

A: Overheads are the indirect costs related to production or manufacturing of goods. These costs can…

Q: An overhead cost budget for the next month is being prepared by Ebony Supply Company. Past studies…

A: Overhead means the amount spent which is not directly linked with production but indirectly linked.…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Over applied overhead is a situation when the overhead cost budgeted is more than the actual…

Q: Accounting A company’s planned activity level for next year is expected to be 50,000 machine hours.…

A: The flexible budget is prepared to estimate the expenses at various level of production.

Q: The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing…

A: Fixed overhead rate = budgeted fixed overhead /budgeted machine hours = 16920/36000 = $0.47 per hour

Q: Wade Company estimates that it will produce 7,000 units of product IOA during the current month.…

A: The variance is the difference between the actual data and standard output of the production of the…

Q: The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing…

A: Overhead applied = (2,700 machine hours x P2.10 per hour) + P16,920 Overhead applied = P22,590

Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…

A: Formula: Applied overheads = Actual machine hours x Per hour rate

Q: True or False. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is…

A: Factory overhead rate per hour = Budgeted factory overhead cost/Budgeted direct labor hour

Q: Crawford Company's standard fixed overhead cost is $6.00 per direct labor hour based on budgeted…

A: Fixed  overhead costs do not change with the level of business activity during a period. These costs…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. At the…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Over and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the…

A: Computation of overhead cost - direct labour Variable manufacturing overhead cos / direct labour…

Q: Carla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of…

A: Fixed Overhead:-These are those cost which does not change for a long period of time even if volume…

Q: KrisKross Inc.'s total predetermined overhead rate is $50 per hour based on a monthly capacity of…

A: Formula: Standard hours for September = Number of units produced in the September month x Each…

Q: At the beginning of the year, ABC Inc. budgeted the following: Units 10,000u; Sales P100,000; Total…

A: Prime cost means the addition of direct material and direct labor and other direct expenses.…

Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…

A: Underapplication of Overheads means that the estimated applied expenditure on factory overheads are…

Q: The Sta. Ana Company has a budgeted normal monthly capacity of 27. 5,000 labor hours with a standard…

A: Definition: Direct labor variances: The difference between the actual labor cost in the production…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $31,400 per month plus $56 per…

A: The activity variance for manufacturing overhead in March would be closest to $5,600 F

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: The overhead charges are the indirect cost which are incurred in manufacturing the goods. Since,…

Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…

A:

Q: The following data are from actual results of Dhiumano Foods Corporation: Actual output 14,550 cases…

A: Variable overhead rate variance::SRR/hour*Actual Hours------Actual Overhead…

Q: [The following information applies to the questions displayed below.] Antuan Company set the…

A: The variable cost per unit remains constant and total fixed costs remains constant at every level of…

Q: Safe Company’s budgeted total variable overhead is at P180,000 for the current period.  In addition,…

A: Solution: Budgeted Overhead = Variable overhead + Fixed overhead = P180,000 + (P200,000 + P20,000) =…

Q: Predetermined overhead rate Factory overhead charged to Work in Process account Under / (Over)…

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Q: World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At…

A:

Q: Meger Manufacturing uses the direct labor cost method for applying factory overhead to production.…

A: Overhead rate = Budgeted factory overhead  /Budgeted direct labor cost = $800,000 / $1,000,000 =…

Q: Normal annual capacity for ABC Company is 72,000 units, with fixed factory overhead budgeted at P…

A: The ideal capacity variance refers to the amount by which the actual production usage declines below…

Q: The following information relates to Steele Manufacturing's overhead costs for the month: $35,600…

A: In the business organizations, the benchmark is already established, and the actual performance is…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: The predetermined overhead rate is computed based on budgeted overhead cost for the budgeted level…

Q: The following data pertains to the month of October for ElmCo. when production was budgeted to be…

A: Variable overhead spending variance is the difference between actual variable overhead assigned and…

Q: Danica Corporation's standard cost system contains the following overhead costs, computed based on a…

A:

Q: ubberly Corporation's cost formula for its manufacturing overhead is $31,300 per month plus $52 per…

A: The variance is the difference between the actual data and standard output of the production.

Q: World Company expects to operate at 80% of its productive capacity of 56,250 units per month. At…

A: Standards are established in advance in respect of sales, cost, efficiency, etc. From the standards,…

Q: The following data pertains to the month of October for ElmCo. when production was budgeted to be…

A: Direct Material Quantity Variance It's the variance which occurs due to the change in the quantity…

Q: Flores Company budgeted total variable costs at P250,000 for the current year. In addition, they…

A: Lets understand basics. Applied overhead is a overhead which is calculated for actual activity…

Q: Company’s fixed factory overhead is budgeted at $300,000 for the year on an expected annual…

A: Variance analysis is an analysis used to recognize the difference between actual behavior and…

Q: Acme Company's production budget for August is 23,000 units and includes the following component…

A: The variance is the difference between the actual data and standard data.

Q: Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of…

A: Variance analysis shows the analysis of the difference between actual and budgeted overheads in the…

Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…

A: We first need to understand the meaning of under or overapplied overhead. A overhead is known to be…

Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…

A: Formula: Overhead rate per hour = Total estimated overhead / Total estimated Machine hours

Q: Flores Company budgeted total variable costs at P250,000 for the current year. In addition, they…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: y Company uses a predetermined overhead rate based on direct labor hours. For the month of October,…

A: The question of over or under applied comes when there is a difference between overheads applied and…

Q: YZ Company expects to produce and sell 15,000 units during the next year with no beginning or ending…

A: Budgeted cost of goods sold = Direct material + Direct labor + variable manufacturing overhead costs…

Q: Luna Company calculates its predetermined rates using practical volume, which is 288,000 units. The…

A: This numerical has covered the concept of Variance Analysis.

Q: The production department of Raredon Corporation has submitted the following forecast of units  to…

A: Budgeting is used to forecast future costs and to facilitate informed decision making.

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: Ribo Company’s budgeted total variable overhead is at P180,000 for the current period.  In addition,…

A: SOLUTION-   OVERHEAD RATE =  TOTAL VARIABLE OVERHEADS +FACTORY RENT +DEPRECIATION ON FACTORY…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.