23. The following information was taken from the annual manufacturing overhead cost budget of Coen Company. Variable manufacturing overhead costs P46,200 Fixed manufacturing overhead costs P27,720 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was P75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Coen’s controllable overhead variance is Group of answer choices P840 U. P3,080 U. P3,920 U. P11,200 U.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
23. The following information was taken from the annual
Variable manufacturing overhead costs P46,200
Fixed manufacturing overhead costs P27,720
Normal production level in labor hours 23,100
Normal production level in units 5,775
Standard labor hours per unit 4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was P75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.
Coen’s controllable overhead variance is
Group of answer choices
- P840 U.
- P3,080 U.
- P3,920 U.
- P11,200 U.
24.
The following information was taken from the annual manufacturing overhead cost budget of Coen Company.
Variable manufacturing overhead costs P46,200
Fixed manufacturing overhead costs P27,720
Normal production level in labor hours 23,100
Normal production level in units 5,775
Standard labor hours per unit 4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was P75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.
Coen’s volume overhead variance is
Group of answer choices
- P840 U.
- P3,080 U.
- P3,920 U.
- P11,200 U.
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