Cille Yuan Manufacturing Company makes only one product. The company has a normal capacity of 32,000 units annually. Cille Yuan is expecting to produce 30,000 units next year but during the year, it actually produced 31,000 units. The company accountant has budgeted the following factory overhead costs for the coming year: Indirect materials Indirect labor Plant utilities Repairs for the plant Material handling costs Depreciation plant assets Rent of plant building Insurance on plant building P2 per unit 144,000 plus P2 per unit 60,000 plus PO.04 per unit 20,000 plus PO.34 per unit 16,000 plus PO.12 per unit 210,000 per year 50,000 per year 12,000 per year Using the most appropriate overhead application based, the applied factory overhead for the year is
Cille Yuan Manufacturing Company makes only one product. The company has a normal capacity of 32,000 units annually. Cille Yuan is expecting to produce 30,000 units next year but during the year, it actually produced 31,000 units. The company accountant has budgeted the following factory overhead costs for the coming year: Indirect materials Indirect labor Plant utilities Repairs for the plant Material handling costs Depreciation plant assets Rent of plant building Insurance on plant building P2 per unit 144,000 plus P2 per unit 60,000 plus PO.04 per unit 20,000 plus PO.34 per unit 16,000 plus PO.12 per unit 210,000 per year 50,000 per year 12,000 per year Using the most appropriate overhead application based, the applied factory overhead for the year is
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Cille Yuan Manufacturing Company makes only one product. The company has a normal capacity
of 32,000 units annually. Cille Yuan is expecting to produce 30,000 units next year but during the
year, it actually produced 31,000 units. The company accountant has budgeted the following factory
overhead costs for the coming year:
Indirect materials
P2 per unit
144,000 plus P2 per unit
60,000 plus PO.04 per unit
20,000 plus PO.34 per unit
16,000 plus PO.12 per unit
210,000 per year
50,000 per year
12,000 per year
Indirect labor
Plant utilities
Repairs for the plant
Material handling costs
Depreciation plant assets
Rent of plant building
Insurance on plant building
Using the most appropriate overhead application based, the applied factory overhead for the year is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e8f078f-0f7f-43b8-bb7c-feb66280d01c%2Fca1f255a-8bab-4068-aa51-5e9dd4a7215b%2Fnlk87ri_processed.png&w=3840&q=75)
Transcribed Image Text:Cille Yuan Manufacturing Company makes only one product. The company has a normal capacity
of 32,000 units annually. Cille Yuan is expecting to produce 30,000 units next year but during the
year, it actually produced 31,000 units. The company accountant has budgeted the following factory
overhead costs for the coming year:
Indirect materials
P2 per unit
144,000 plus P2 per unit
60,000 plus PO.04 per unit
20,000 plus PO.34 per unit
16,000 plus PO.12 per unit
210,000 per year
50,000 per year
12,000 per year
Indirect labor
Plant utilities
Repairs for the plant
Material handling costs
Depreciation plant assets
Rent of plant building
Insurance on plant building
Using the most appropriate overhead application based, the applied factory overhead for the year is
![The comparative inventory data for SAN JOSE Manufacturing Corporation for the year ended
December 31, 2014 is summarized below:
Raw Materials inventory P 55,000
Work in process inventory
Finished goods inventory
January 1 December 31
P 53,000
59,000
47,000
49,000
45,000
During the year 2014, the corporation completed, among others, the following transactions:
j.
k.
materials.
1.
Purchases, all on account, direct materials, P2,100,000; indirect materials, P400,000.
The total materials requisitioned for use during the year included P360,000 for indirect
The payroll for the year was a follows: direct labor, P1,650,000, indirect labor, P550,000.
The payroll was vouchered, and analysis disclosed the following details:
W/H Tax
m.
Phil Health
HDMF
P 38,000
Gross
SS
ECC
Direct labor
P 1,650,000 P 80,000
P 40,000
P12,000
P 6,000
Indirect labor
550,000
40,000
12,500
3,000
12,000
1,500
n. Other manufacturing expenses vouchered amounted to P920,000, and depreciation
charges were P450,000 on plant assets.
o. Manufacturing expenses were applied to production at predetermined rate equal to 150%
of direct labor cost.
p. Completed goods were transferred to the finished goods warehouse.
q. All sales are made on terms 2/10, n/30; billing price is at 150% of actual cost.
r. At the end of the year, any overapplied or underapplied manufacturing expense is treated
as an adjustment to the cost of goods sold.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e8f078f-0f7f-43b8-bb7c-feb66280d01c%2Fca1f255a-8bab-4068-aa51-5e9dd4a7215b%2Fdc2le9c_processed.png&w=3840&q=75)
Transcribed Image Text:The comparative inventory data for SAN JOSE Manufacturing Corporation for the year ended
December 31, 2014 is summarized below:
Raw Materials inventory P 55,000
Work in process inventory
Finished goods inventory
January 1 December 31
P 53,000
59,000
47,000
49,000
45,000
During the year 2014, the corporation completed, among others, the following transactions:
j.
k.
materials.
1.
Purchases, all on account, direct materials, P2,100,000; indirect materials, P400,000.
The total materials requisitioned for use during the year included P360,000 for indirect
The payroll for the year was a follows: direct labor, P1,650,000, indirect labor, P550,000.
The payroll was vouchered, and analysis disclosed the following details:
W/H Tax
m.
Phil Health
HDMF
P 38,000
Gross
SS
ECC
Direct labor
P 1,650,000 P 80,000
P 40,000
P12,000
P 6,000
Indirect labor
550,000
40,000
12,500
3,000
12,000
1,500
n. Other manufacturing expenses vouchered amounted to P920,000, and depreciation
charges were P450,000 on plant assets.
o. Manufacturing expenses were applied to production at predetermined rate equal to 150%
of direct labor cost.
p. Completed goods were transferred to the finished goods warehouse.
q. All sales are made on terms 2/10, n/30; billing price is at 150% of actual cost.
r. At the end of the year, any overapplied or underapplied manufacturing expense is treated
as an adjustment to the cost of goods sold.
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