Little Company uses a standard costing system. The following monthly cost functions apply to its manufacturing overhead items: Overhead Item Cost Function Indirect materials P0.80 per DLH P1.00 per DLH PO.40 per DLH P8,000 Р32,000 Indirect labor Utilities Insurance Depreciation Information for the month of October is as follows: Actual overhead costs incurred: Indirect materials P20,800 24,000 9,600 8,800 32,000 P95,200 Indirect labor Utilities Insurance Depreciation Total Actual direct labor hours worked 24,000 27,000 Standard direct labor hours allowed for production achieved Little uses expected capacity to calculate standard overhead rates. The monthly expected capacity is 25,000 hours. Required: а. Calculate the following standard overhead rates based upon expected capacity:

Little Company uses a standard costing system. The following monthly cost functions apply to its manufacturing overhead items: Overhead Item Cost Function Indirect materials P0.80 per DLH P1.00 per DLH PO.40 per DLH P8,000 Р32,000 Indirect labor Utilities Insurance Depreciation Information for the month of October is as follows: Actual overhead costs incurred: Indirect materials P20,800 24,000 9,600 8,800 32,000 P95,200 Indirect labor Utilities Insurance Depreciation Total Actual direct labor hours worked 24,000 27,000 Standard direct labor hours allowed for production achieved Little uses expected capacity to calculate standard overhead rates. The monthly expected capacity is 25,000 hours. Required: а. Calculate the following standard overhead rates based upon expected capacity:

Name: b. Calculate the following variances:1. Variable overhead spending va
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Description: b. Calculate the following variances:1. Variable overhead spending variance2. Variable overhead efficiency variance3. Fixed overhead spending variance4. Fixed overhead volume variance Little Company uses a standard costing system. The following mont

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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