Polar Corp during March 2019, recorded P42,400 of costs related to factory overhead. overhead application rate is based on direct labor hours. The present formula for overhead application estimated that P42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.

Polar Corp during March 2019, recorded P42,400 of costs related to factory overhead. overhead application rate is based on direct labor hours. The present formula for overhead application estimated that P42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.

Name: Polar Corp during March 2019, recorded P42,400 of costs related to fa
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Description: Polar Corp during March 2019, recorded P42,400 of costs related to factoryoverhead. overhead application rate is based on direct labor hours. Thepresent formula for overhead application estimated that P42,700 would beincurred, and 4,500 direct labor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Polar Corp during March 2019, recorded P42,400 of costs related to factory
overhead. overhead application rate is based on direct labor hours. The
present formula for overhead application estimated that P42,700 would be
incurred, and 4,500 direct labor hours would be worked.
During March, 6,250 hours were actually worked.
Use this information to determine the amount of factory overhead that was
(over) or under applied.

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