How much is the over/underapplied FOH? Indicate whether over/underapplied. Ex. 123456 Overapplied or 123456 Underapplied A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a job order costing system. The flexible budget covering next years' expected range of activity is: 80,000 64,000 110,000 88,000 P100,000 P160,000 P220,000 150,000 P250,000 P310,000 P370,000 A predetermined overhead rate is based on direct to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. At the end of the year, actual direct labor hours for the year were 112,375 hours and the actual manufacturing overhead for the Direct Labor Hours Machine Hours 50,000 40,000 Variable OH Costs Fixed OH Costs Total OH Costs 150,000 150,000 labor hours is used year was P412,525.
How much is the over/underapplied FOH? Indicate whether over/underapplied. Ex. 123456 Overapplied or 123456 Underapplied A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a job order costing system. The flexible budget covering next years' expected range of activity is: 80,000 64,000 110,000 88,000 P100,000 P160,000 P220,000 150,000 P250,000 P310,000 P370,000 A predetermined overhead rate is based on direct to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. At the end of the year, actual direct labor hours for the year were 112,375 hours and the actual manufacturing overhead for the Direct Labor Hours Machine Hours 50,000 40,000 Variable OH Costs Fixed OH Costs Total OH Costs 150,000 150,000 labor hours is used year was P412,525.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 67P: Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:How much is the over/underapplied FOH? Indicate whether over/underapplied.
Ex. 123456 Overapplied or 123456 Underapplied
A company manufactures plastic products for the
home and restaurant market.
The company also
does contract work for other customers and utilizes a
job order costing system.
The flexible budget
covering next years' expected range of activity is:
50,000
40,000
80,000
64,000
P100,000 P160,000 P220,000
150,000
Р250,000 Р310,000 Р370,000
Direct Labor Hours
110,000
88,000
Machine Hours
Variable OH Costs
Fixed OH Costs
150,000
150,000
Total OH Costs
A predetermined overhead rate is based on direct
labor hours is
used
to apply total
overhead.
Management has estimated that 100,000 direct labor
hours will be used next year. At the end of the year,
actual direct labor hours for the year were 112,375
hours and the actual manufacturing overhead for the
year was P412,525.
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