Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. The company's total applied factory overhead was P315,000 last year when the company used 32,000 direct labor hours as it activity base. If the variable factory overhead rate was P8 per direct labor hour, and if 30,000 standard labor hours were allowed for the output of that year, then the total budgeted fixed factor overhead for that year must have been?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8EA: Queen Industries uses a standard costing system in the manufacturing of its single product. It...
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Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. The
company's total applied factory overhead was P315,000 last year when the company used 32,000 direct labor hours as it activity base. If the variable factory
overhead rate was P8 per direct labor hour, and if 30,000 standard labor hours were allowed for the output of that year, then the total budgeted fixed factor
overhead for that year must have been?
Transcribed Image Text:Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. The company's total applied factory overhead was P315,000 last year when the company used 32,000 direct labor hours as it activity base. If the variable factory overhead rate was P8 per direct labor hour, and if 30,000 standard labor hours were allowed for the output of that year, then the total budgeted fixed factor overhead for that year must have been?
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