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
icon
Related questions
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
Transcribed Image Text: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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education