During the month of July, the records of Aaron Neri Company revealed the following data: Indirect materials and factory supplies P 68,000 Supervisory salaries 90,000 Repairs and maintenance 40,000 Heat, light, and power 28,000 Overtime premium – plant workers 20,000 Fringe benefits for plant workers 15,000 Depreciation – plant. 190,000 Insurance - plant 22,000 Promotional expenses 20,000 Patent amortization expense 30,000 Delivery expense 25,000 The company applies its factory overhead at a rate of P 7.50 per direct labor hours. The payroll for themonth showed a total direct labor hours worked at 71,000. Requirement: Determine the following data for July financial statements: 1. Total actual factory overhead costs. 2. Total applied factory overhead costs. 3. Total factory overhead costs to be shown on the Statement of Cost of Goods Sold.
During the month of July, the records of Aaron Neri Company revealed the following data: Indirect materials and factory supplies P 68,000 Supervisory salaries 90,000 Repairs and maintenance 40,000 Heat, light, and power 28,000 Overtime premium – plant workers 20,000 Fringe benefits for plant workers 15,000 Depreciation – plant. 190,000 Insurance - plant 22,000 Promotional expenses 20,000 Patent amortization expense 30,000 Delivery expense 25,000 The company applies its factory overhead at a rate of P 7.50 per direct labor hours. The payroll for themonth showed a total direct labor hours worked at 71,000. Requirement: Determine the following data for July financial statements: 1. Total actual factory overhead costs. 2. Total applied factory overhead costs. 3. Total factory overhead costs to be shown on the Statement of Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the month of July, the records of Aaron Neri Company revealed the following data:
Indirect materials and factory supplies P 68,000
Supervisory salaries 90,000
Repairs and maintenance 40,000
Heat, light, and power 28,000
Overtime premium – plant workers 20,000
Insurance - plant 22,000
Promotional expenses 20,000
Patent amortization expense 30,000
Delivery expense 25,000
The company applies its factory overhead at a rate of P 7.50 per direct labor hours. The payroll for themonth showed a total direct labor hours worked at 71,000.
Requirement: Determine the following data for July financial statements:
1. Total actual factory overhead costs .
2. Total applied factory overhead costs.
3. Total factory overhead costs to be shown on the Statement of Cost of Goods Sold.
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