D'Santos uses a job-order cost system with machine hours as an overhead base. Thefollowing information relates to D'Santos for last year:Estimated machine hours for the yearActual machine hours for the yearPredetermined overhead rateUnderapplied factory overhead11. What is the peso amount of the following items?Estimated OHP 61,200P 61,200P 63,00042,00040,800P 1.50 per MHP 2,600Applied OHActual OHа..P 63,000P 60,400b.63,00065,600с.61,20058,600d.P 63,00061,20063,800 Justine Company budgeted total variable overhead costs at P180,000 for the currentperiod. In addition, they budgeted costs for factory rent at P215,000, costs fordepreciation of office equipment at P12,000 coșts for office rent at P92,000, and costsfor depreciation of factory equipment at P 38,000. All these costs were based uponestimated machine hours of 80,000. At the end of the period, the Factory Overheadcontrol account had a balance of P 387,875. Actual machine hours were 74,000.12. What was the over or underapllied factory overhead for the period?P 12,650 overappliedb.а.P 12,650 underappliedP 108,850 overappliedd.с.P 108,850 underapplied

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Description: D'Santos uses a job-order cost system with machine hours as an overhead base. Thefollowing information relates to D'Santos for last year:Estimated machine hours for the yearActual machine hours for the yearPredetermined overhead rateUnderapplied fac

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D'Santos uses a job-order cost system with machine hours as an overhead base. The following information relates to D'Santos for last year: Estimated machine hours for the year Actual machine hours for the year Predetermined overhead rate 42,000 40,800 P 1.50 per MH P 2,600 Underapplied factory overhead 11. What is the peso amount of the following items? Estimated OH P 61,200 P 61,200 P 63,000 P 63,000 Applied OH P 63,000 Actual OH P 60,400 а.. b. 63,000 65,600 с. 61,200 58,600 d. 61,200 63,800

D'Santos uses a job-order cost system with machine hours as an overhead base. The following information relates to D'Santos for last year: Estimated machine hours for the year Actual machine hours for the year Predetermined overhead rate 42,000 40,800 P 1.50 per MH P 2,600 Underapplied factory overhead 11. What is the peso amount of the following items? Estimated OH P 61,200 P 61,200 P 63,000 P 63,000 Applied OH P 63,000 Actual OH P 60,400 а.. b. 63,000 65,600 с. 61,200 58,600 d. 61,200 63,800

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

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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Question

D'Santos uses a job-order cost system with machine hours as an overhead base. The
following information relates to D'Santos for last year:
Estimated machine hours for the year
Actual machine hours for the year
Predetermined overhead rate
Underapplied factory overhead
11. What is the peso amount of the following items?
Estimated OH
P 61,200
P 61,200
P 63,000
42,000
40,800
P 1.50 per MH
P 2,600
Applied OH
Actual OH
а..
P 63,000
P 60,400
b.
63,000
65,600
с.
61,200
58,600
d.
P 63,000
61,200
63,800

Justine Company budgeted total variable overhead costs at P180,000 for the current
period. In addition, they budgeted costs for factory rent at P215,000, costs for
depreciation of office equipment at P12,000 coșts for office rent at P92,000, and costs
for depreciation of factory equipment at P 38,000. All these costs were based upon
estimated machine hours of 80,000. At the end of the period, the Factory Overhead
control account had a balance of P 387,875. Actual machine hours were 74,000.
12. What was the over or underapllied factory overhead for the period?
P 12,650 overapplied
b.
а.
P 12,650 underapplied
P 108,850 overapplied
d.
с.
P 108,850 underapplied

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