The manager of Mandaue LTO has determined that it typically takes 30 minutes for the department's employees to register a new car. In Mandaue, the fixed overhead rate computed on an estimated 4,000 direct labor hours is P8 per direct labor hour, whereas the variable overhead rate is estimated at P3 per direct labor hour. During July, 7,600 cars were registered in Mandaue and 3,700 direct labor hours were worked in registering those vehicles. For the month, variable overhead was P10,730 and fixed overhead was P29,950 Required: a. Compute the overhead variances using a four-variance approach. b. Compute the overhead variances using a three-variance approach c. Compute the overhead variances using a two-variance approach d. Compute the overhead variances using a one way approach.
The manager of Mandaue LTO has determined that it typically takes 30 minutes for the department's employees to register a new car. In Mandaue, the fixed overhead rate computed on an estimated 4,000 direct labor hours is P8 per direct labor hour, whereas the variable overhead rate is estimated at P3 per direct labor hour. During July, 7,600 cars were registered in Mandaue and 3,700 direct labor hours were worked in registering those vehicles. For the month, variable overhead was P10,730 and fixed overhead was P29,950 Required: a. Compute the overhead variances using a four-variance approach. b. Compute the overhead variances using a three-variance approach c. Compute the overhead variances using a two-variance approach d. Compute the overhead variances using a one way approach.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...
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Kindly answer req D only. Thank you.
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