Jose Corp makes bottles using the latest automated technology. The company applies FOH cost to product on the basis of machine hours. The following are estimate used to determine factory overhead rate at the start of the year Machine hours 150,000 Factory Overhead Cost 1,800,000 The company cost records shows the following actual cost incurred for the year, Machine hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (Includes FOH applied of P72,000) 200,000 Finished Goods (includes FOH applied of P360,000) 1,000,000 Cost of Goods Sold (includes FOH applied of P1,008,000) 2,800,000
Jose Corp makes bottles using the latest automated technology. The company applies FOH cost to product on the basis of machine hours. The following are estimate used to determine factory overhead rate at the start of the year Machine hours 150,000 Factory Overhead Cost 1,800,000 The company cost records shows the following actual cost incurred for the year, Machine hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (Includes FOH applied of P72,000) 200,000 Finished Goods (includes FOH applied of P360,000) 1,000,000 Cost of Goods Sold (includes FOH applied of P1,008,000) 2,800,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
Related questions
Question
Compute the FOH rate
Compute the under or applied Factory Overhead
Assume the variance is material, what is the adjustment of the COGS
Assume the variance is material, what is the variance share of the Finished goods inventory acc
Assume the variance is material, what is the variance share of the Work in Process account
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