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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