p23What amount of total fixed manufacturing overhead cost did GB apply to production last year? GB Manufacturing Company uses a standard cost system with machine-hours as theactivity base for overhead. Last year, GB incurred P840,000 of fixed manufacturingoverhead and generated a P42,000 favorable fixed overhead budget variance. Thefollowing data relate to last year's operations:Denominator activity level in machine-hours.Standard machine-hours allowed for actual output,Actual number of machine-hours incurred21,00020.00022,050P972,405P840,000P926,100P837,900

Budgeted overhead for last year = Actual fixed overhead + Favorable fixed overhead budget variance =…

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What amount of total fixed manufacturing overhead cost did GB apply to production last year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

100%

p23

What amount of total fixed manufacturing overhead cost did GB apply to production last year?

GB Manufacturing Company uses a standard cost system with machine-hours as the
activity base for overhead. Last year, GB incurred P840,000 of fixed manufacturing
overhead and generated a P42,000 favorable fixed overhead budget variance. The
following data relate to last year's operations:
Denominator activity level in machine-hours.
Standard machine-hours allowed for actual output,
Actual number of machine-hours incurred
21,000
20.000
22,050
P972,405
P840,000
P926,100
P837,900

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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