The Winslow Corporation sells stacks of poker chips to several casinos in Las Vegas area. The corporation collected the following information pertaining to its factory overhead: Actual factory overhead for 2020 P250,000 Expected factory overhead 2020: Variable P7.20/stack Fixed P 14,000 Semi-Variable: 0-15,000 stacks P9,500 15,0001-30,000 P13,000 30,001-45,000 P16,500 45,001-up P20,000 Expected capacity for 2020 30,500 stacks Units of production for July 2020 3,250 stacks Actual factory overhead for July 2020 10.5% of actual factory overhead for 2020 Expected capacity is used to determine estimated factory overhead, with units of production as the base. Determine the over-or underapplied factory overhead for the month of July 2020
The Winslow Corporation sells stacks of poker chips to several casinos in Las Vegas area. The corporation collected the following information pertaining to its factory
Actual factory overhead for 2020 P250,000
Expected factory overhead 2020:
Variable P7.20/stack
Fixed P 14,000
Semi-Variable:
0-15,000 stacks P9,500
15,0001-30,000 P13,000
30,001-45,000 P16,500
45,001-up P20,000
Expected capacity for 2020 30,500 stacks
Units of production for July 2020 3,250 stacks
Actual factory overhead for July 2020 10.5% of actual
factory overhead for 2020
Expected capacity is used to determine estimated factory overhead, with units of production as the base. Determine the over-or underapplied factory overhead for the month of July 2020.
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