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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kindly answer req D only. Thank you.
Transcribed Image Text: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 ah 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 uUsing a one way approach.
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