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34. Assume, for this question only, actual overhead is P98,700 and applied overhead is P93,250. Manufacturing overhead application variance is? (Indicate whether underapplied or overapplied)

34. Assume, for this question only, actual overhead is P98,700 and applied overhead is P93,250. Manufacturing overhead application variance is? (Indicate whether underapplied or overapplied)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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The records of Nysa Company revealed the following for the current year: Work-in-process inventory, P73,150 Finished goods inventory, P115,000 Cost of goods sold, P133,650 Direct labor, P111,600 Direct materials, P84,200 34. Assume, for this question only, actual overhead is P98,700 and applied overhead is P93,250. Manufacturing overhead application variance is? (Indicate whether underapplied or overapplied) 35. Assume that Nysa has underapplied overhead of P37,200 and that this amount is material. How much will be debited in the work-in-process inventory account to close the overhead account? 36. Assume that Nysa has underapplied overhead of P10,000 and that this amount is immaterial. What is the balance of cost of goods sold after the underapplied overhead has been closed? 37. Assume that Nysa has overapplied overhead of P25,000 and that this amount is material. What is the balance in cost of goods sold after the overapplied overhead has been closed?
Transcribed Image Text:The records of Nysa Company revealed the following for the current year: Work-in-process inventory, P73,150 Finished goods inventory, P115,000 Cost of goods sold, P133,650 Direct labor, P111,600 Direct materials, P84,200 34. Assume, for this question only, actual overhead is P98,700 and applied overhead is P93,250. Manufacturing overhead application variance is? (Indicate whether underapplied or overapplied) 35. Assume that Nysa has underapplied overhead of P37,200 and that this amount is material. How much will be debited in the work-in-process inventory account to close the overhead account? 36. Assume that Nysa has underapplied overhead of P10,000 and that this amount is immaterial. What is the balance of cost of goods sold after the underapplied overhead has been closed? 37. Assume that Nysa has overapplied overhead of P25,000 and that this amount is material. What is the balance in cost of goods sold after the overapplied overhead has been closed?
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