The following information relates to a given department of Mervi Company for the first quarter of 2018: Actual total overhead (fixed plus variable) P 178,500 Budget formula: Total FOH Cost = P 110,000 + 0.50/hr Total overhead application rate P 1.50 per hour  Spending variance (from three way)   8,000 UF Volume variance (from two way) 5,000 F What were the standard hours allowed for good output in this department? a. 105,000 b. 106, 667 c. 110,000 d. 115,000 What were the actual hours worked in this department during the quarter? a. 110,000 b. 121,000 c. 137,000 d. 153,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information relates to a given department of Mervi Company for the first quarter of 2018:

Actual total overhead (fixed plus variable) P 178,500

Budget formula:

Total FOH Cost = P 110,000 + 0.50/hr

Total overhead application rate P 1.50 per hour 
Spending variance (from three way)   8,000 UF
Volume variance (from two way) 5,000 F

  1. What were the standard hours allowed for good output in this department?

    1. a. 105,000
      b. 106, 667
      c. 110,000
      d. 115,000

    2. What were the actual hours worked in this department during the quarter?

      a. 110,000
      b. 121,000
      c. 137,000
      d. 153,000
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