How much is the over/underapplied FOH? Indicate whether over/underapplied. Ex. 123456 Overapplied or 123456 Underapplied A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a job order costing system. covering next years' expected range of activity is: Direct Labor Hours Machine Hours Variable OH Costs Fixed OH Costs Total OH Costs The flexible budget 50,000 40,000 110,000 88,000 80,000 64,000 P100,000 P160,000 P220,000 150,000 P250,000 P310,000 P370,000 150,000 150,000 A predetermined overhead rate is based on direct labor hours is used to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. At the end of the year, actual direct labor hours for the year were 112,375 hours and the actual manufacturing overhead for the year was P412,525.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How much is the over/underapplied FOH?
Indicate whether over/underapplied. Ex.
123456 Overapplied or 123456
Underapplied
A company manufactures plastic products for the
home and restaurant market. The company also
does contract work for other customers and utilizes a
The flexible budget
job order costing system.
covering next years' expected range of activity is:
Direct Labor Hours
Machine Hours
50,000
40,000
80,000
64,000
110,000
8৪,000
Variable OH Costs P100,000 P160,000 P220,000
Fixed OH Costs
150,000
P250,000 P310,000 P370,000
150,000
150,000
Total OH Costs
A predetermined overhead rate is based on direct
labor hours is used to apply total overhead.
Management has estimated that 100,000 direct labor
hours will be used next year. At the end of the year,
actual direct labor hours for the year were 112,375
hours and the actual manufacturing overhead for the
year was P412,525.
Transcribed Image Text:How much is the over/underapplied FOH? Indicate whether over/underapplied. Ex. 123456 Overapplied or 123456 Underapplied A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a The flexible budget job order costing system. covering next years' expected range of activity is: Direct Labor Hours Machine Hours 50,000 40,000 80,000 64,000 110,000 8৪,000 Variable OH Costs P100,000 P160,000 P220,000 Fixed OH Costs 150,000 P250,000 P310,000 P370,000 150,000 150,000 Total OH Costs A predetermined overhead rate is based on direct labor hours is used to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. At the end of the year, actual direct labor hours for the year were 112,375 hours and the actual manufacturing overhead for the year was P412,525.
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