Flores Company budgeted total variable costs at P250,000 for the current year. In addition, they budgeted costs for (a) factory rent at P325,000; (b) depreciation of office equipment at P20,000; (c) office rent at P140,000; and (d) depreciation of factory equipment at P60,000. All of the above costs were based upon estimated 50,080 machine hours. At the end of the accounting period, the Factory Overhead Control had a balance of P650,625. Actual machine hours were 53,210. What was the over or underapplied factory overhead for the period? * P 24,062 overapplied. P 45,312 underapplied. P 24,062 underapplied. P194,062 overapplied.

Flores Company budgeted total variable costs at P250,000 for the current year. In addition, they budgeted costs for (a) factory rent at P325,000; (b) depreciation of office equipment at P20,000; (c) office rent at P140,000; and (d) depreciation of factory equipment at P60,000. All of the above costs were based upon estimated 50,080 machine hours. At the end of the accounting period, the Factory Overhead Control had a balance of P650,625. Actual machine hours were 53,210. What was the over or underapplied factory overhead for the period? * P 24,062 overapplied. P 45,312 underapplied. P 24,062 underapplied. P194,062 overapplied.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

100%

Flores Company budgeted total variable costs at P250,000 for the current
year. In addition, they budgeted costs for (a) factory rent at P325,00o; (b)
depreciation of office equipment at P20,000; (c) office rent at P140,000;
and (d) depreciation of factory equipment at P60,000. All of the above
costs were based upon estimated 50,080 machine hours. At the end of the
accounting period, the Factory Overhead Control had a balance of
P650,625. Actual machine hours were 53,210. What was the over or
underapplied factory overhead for the period? *
P 24,062 overapplied.
P 45,312 underapplied.
O P 24,062 underapplied.
O P194,062 overapplied.

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