Jose Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year.Machine Hours150,000Factory Overhead Cost1,800,000The company cost records show the following actual cost incurred for the year.Machine Hours120,000Factory Overhead Cost1,700,000Raw Materials60,000Work in Process (includes Factory Overhead applied of $72,000)200,000Finished Goods (includes Factory Overhead applied of $360,000)1,000,000Cost of Goods Sold (includes Factory Overhead applied of $1,008,000)2,800,000 Assume the variance is material, what is the variance share of the Finished Goods Inventory account?Assume the variance is material, what is the variance share of the Work in Process account?

Factory Overhead rate = Factory Overhead Cost / Machine hours = P1,800,000 / 150,000 hours = P12 per…

Answered: Jose Corporation makes bottles using…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 16P: Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead,...

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Jose Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year.

Machine Hours	150,000
Factory Overhead Cost	1,800,000

The company cost records show 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 Factory Overhead applied of $72,000)	200,000
Finished Goods (includes Factory Overhead applied of $360,000)	1,000,000
Cost of Goods Sold (includes Factory Overhead applied of $1,008,000)	2,800,000

Assume the variance is material, what is the variance share of the Finished Goods Inventory account?
Assume the variance is material, what is the variance share of the Work in Process account?

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