11. BECKY uses a job order cost system and applies factory overhead to production orders on the basis of direc-labor cost. The overhead rates for 2011 are 200% for Department A and 50% for Department B. Job 123 started and completed during 2013 as charged with the following costs: Department A Direct materials P 25,000 P 5,000 Direct labor ? 30,000 Factory overhead 40,000 ? The total manufacturing costs associated with Job 123 should be P 180,000 A P 135,000 C P 195,000 D P 240,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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11.
BECKY uses a job order cost system and applies factory overhead to production orders on the basis of direc-labor
cost. The overhead rates for 2011 are 200% for Department A and 50% for Department B. Job 123 started and
|completed during 2013 as charged with the following costs:
Department
A
B
Direct materials
P
25,000 P
5,000
Direct labor
?
30,000
Factory overhead
40,000
The total manufacturing costs associated with Job 123 should be
A P 135,000
P 180,000
C P 195,000
P 240,000
D
12.
RIZZA COMPANY uses a predetermined factory overhead application rate based on direct labor cost. For the year
ended, December 31, 2011. Rizza's budgeed factory overhead was P 600,000, based on a budgeted volume of
P 50,000 direct labor hours, at a standard direct labor rate of P 6.00 per hour. Actual factory overhead amounted
to P 620,000, with actual direct labor cost of P 325,000.
For 2011, over-applied factory overhead was:
A P 20,000
В
P 24,000
сР 30,000
P 50,000
D
Transcribed Image Text:11. BECKY uses a job order cost system and applies factory overhead to production orders on the basis of direc-labor cost. The overhead rates for 2011 are 200% for Department A and 50% for Department B. Job 123 started and |completed during 2013 as charged with the following costs: Department A B Direct materials P 25,000 P 5,000 Direct labor ? 30,000 Factory overhead 40,000 The total manufacturing costs associated with Job 123 should be A P 135,000 P 180,000 C P 195,000 P 240,000 D 12. RIZZA COMPANY uses a predetermined factory overhead application rate based on direct labor cost. For the year ended, December 31, 2011. Rizza's budgeed factory overhead was P 600,000, based on a budgeted volume of P 50,000 direct labor hours, at a standard direct labor rate of P 6.00 per hour. Actual factory overhead amounted to P 620,000, with actual direct labor cost of P 325,000. For 2011, over-applied factory overhead was: A P 20,000 В P 24,000 сР 30,000 P 50,000 D
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