The following information relates to the Finishing department of Tom company for the fourth quarter: Total actual overhead, P178,500; Budget allowance formula, P110,000 plus P0.50 per direct labor hour, Predetermined factory overhead rate, P1.50 per direct labor hour; Spending variance, P8,000 unfavorable; Efficiency variance, P9,000 unfavorable. The total factory overhead is divided into three variances – spending, idle capacity and efficiency. Compute for the actual direct labor hours worked in the finishing department during the fourth quarter.

The following information relates to the Finishing department of Tom company for the fourth quarter: Total actual overhead, P178,500; Budget allowance formula, P110,000 plus P0.50 per direct labor hour, Predetermined factory overhead rate, P1.50 per direct labor hour; Spending variance, P8,000 unfavorable; Efficiency variance, P9,000 unfavorable. The total factory overhead is divided into three variances – spending, idle capacity and efficiency. Compute for the actual direct labor hours worked in the finishing department during the fourth quarter.

Name: The following information relates to the Finishing department of Tomc
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Description: The following information relates to the Finishing department of Tomcompany for the fourth quarter:Total actual overhead, P178,500; Budget allowance formula, P110,000 plusPO.50 per direct labor hour; Predetermined factory overhead rate, P1.50 perdir

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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