The data below relate to the month of November for Badong, Inc. which uses a standard cost system: Actual direct labor cost, P43,400 Actual hours used, 14,000 Standard hours allowed for good output, 15,000 Direct labor rate variance - debit, 1,400 Actual total overhead, 32,000 Budgeted fixed cost, 9,000 Normal activity in hours, 12,000 Total application rate per standard direct labor hour, 2.25 Badong uses a two-way analysis of overhead variance. What was Badong's budget (controllable) variance for November? O P2,250 favorable P500 unfavorable P500 favorable P2,250 unfavorable

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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The data below relate to the month of November for Badong, Inc. which uses a standard
cost system:
2
Actual direct labor cost, P43,400
Actual hours used, 14,000
Standard hours allowed for good output, 15,000
Direct labor rate variance - debit, 1,400
Actual total overhead, 32,000
Budgeted fixed cost, 9,000
Normal activity in hours, 12,000
Total application rate per standard direct labor hour, 2.25
Badong uses a two-way analysis of overhead variance.
What was Badong's budget (controllable) variance for November?
P2,250 favorable
O P500 unfavorable
OP500 favorable
P2,250 unfavorable
Transcribed Image Text:The data below relate to the month of November for Badong, Inc. which uses a standard cost system: 2 Actual direct labor cost, P43,400 Actual hours used, 14,000 Standard hours allowed for good output, 15,000 Direct labor rate variance - debit, 1,400 Actual total overhead, 32,000 Budgeted fixed cost, 9,000 Normal activity in hours, 12,000 Total application rate per standard direct labor hour, 2.25 Badong uses a two-way analysis of overhead variance. What was Badong's budget (controllable) variance for November? P2,250 favorable O P500 unfavorable OP500 favorable P2,250 unfavorable
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