The following information relates to the Finishing department of Tom company for the fourth quarter: Total actual overhead, P178,500; Budgeted allowance formula, P110,000 plus P0.50 per direct labor hour; Predetermined factory overhead rate, P1.50 per direct labor hour; Spendi8ng variance, P8,000 unfavorable; Efficiency variance, P9,000 unfavorable. The total factory overhead is divided into three variances- spending, idle capacity and efficiency. Compute for the actual direct labor hours worked in the finishing department during the fourth quarter.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The following information relates to the Finishing department of Tom company for the fourth quarter: Total actual overhead, P178,500; Budgeted allowance formula, P110,000 plus P0.50 per direct labor hour; Predetermined factory overhead rate, P1.50 per direct labor hour; Spendi8ng variance, P8,000 unfavorable; Efficiency variance, P9,000 unfavorable. The total factory overhead is divided into three variances- spending, idle capacity and efficiency. Compute for the actual direct labor hours worked in the finishing department during the fourth quarter.

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