98 Peters Company uses a flexible budget system and prepared the followincinformationfor the year:Percent of capacityDirect labor hoursVariable factory overheadFixed factory overheadTotal factory overheadrate per DLH80%90%24,000P48,000P108,00027,000P54,000P108.000P7.00P6.50Peters operated at 80% of capacity during the year but applied factory overhead based onthe 90% capacity level. Assuming that actual factory overhead was equal to the budgetedamount for the attained capacity, what is the amount of overhead variance for the year?a. P6,000 overabsorbed.b. P6,000 underabsorbed.c. P12,000 overabsorbed.d. P12,000 underabsorbed.(aicpa)d the following budget at

Name: 98 Peters Company uses a flexible budget system and prepared the foll
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Description: 98 Peters Company uses a flexible budget system and prepared the followincinformationfor the year:Percent of capacityDirect labor hoursVariable factory overheadFixed factory overheadTotal factory overheadrate per DLH80%90%24,000P48,000P108,00027,000

Variable Cost - The total cost of production of a good comprises of the total fixed cost of…

Business

Accounting

For the year: Percent of capacity Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead rate per DLH 80% 90% 24,000 P48,000 P108,000 27,000 P54,000 P108.000 P7.00 P6.50

For the year: Percent of capacity Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead rate per DLH 80% 90% 24,000 P48,000 P108,000 27,000 P54,000 P108.000 P7.00 P6.50

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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Output level in units and corresponding production overhead costs for Opti Ltd for three months are as follows: Output (Units) 160,000 110,000 240,000 Production overhead costs January February March €556,000 €416,000 €780,000 Production overheads include both a fixed and variable element. Calculate the total fixed production overhead costs for an output of 142,000 units.
During February, direct labor cost totaled P13,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during February were P80,000, the manufacturing overhead was:a. P19,500b. P32,500c. P47,500d. P67,000
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