Required: Prepare the joumal entries to record the above variances, including the recording of the actual and applied factory overhead using a single factory overhead control account.
Required: Prepare the joumal entries to record the above variances, including the recording of the actual and applied factory overhead using a single factory overhead control account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![Toneri Otsutsuki Corp. determines that the following variances arose in produciion
during March:
Variance
Materials purchase price.
Materials quantity
Labor efficiency
Labor rate
Amount
P2,400 favorable
1,000 favorable
500 favorable
750
unfavorable
Factory overhead volume
Factory overhead controllable.
1,700 favorable
2,9 50
unfavorable
Materials purchases totaled P90,000 at standard costs, while P77,000 in materials were
taken from inventory for use in production. Labor payroll totaled P144,000, and actual
overhead incurred was P256,000.
Required: Prepare the journal entries to record the above variances, including the
recording of the actual and applied factory overhead using a single factory overhead
control account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a5db1e8-9dc3-4798-90ce-bc710e49e130%2F3095a144-58ed-4143-81d1-5967de596370%2Fogbfo4d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Toneri Otsutsuki Corp. determines that the following variances arose in produciion
during March:
Variance
Materials purchase price.
Materials quantity
Labor efficiency
Labor rate
Amount
P2,400 favorable
1,000 favorable
500 favorable
750
unfavorable
Factory overhead volume
Factory overhead controllable.
1,700 favorable
2,9 50
unfavorable
Materials purchases totaled P90,000 at standard costs, while P77,000 in materials were
taken from inventory for use in production. Labor payroll totaled P144,000, and actual
overhead incurred was P256,000.
Required: Prepare the journal entries to record the above variances, including the
recording of the actual and applied factory overhead using a single factory overhead
control account.
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