Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. saktanmokobaybeh company uses standard costing for

Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The...

70.2K

Verified Solution

Question

Accounting

Saktanmokobaybeh Company uses standard costing for direct materials and direct labor.

The following monthly cost functions were developed for manufacturing overhead items: Budgeted Overhead Item Cost Function:

Indirect materials P1.00 per DLH

Indirect labor P1.25 per DLH

Utilities P0.50 per DLH

Insurance P50,000

Depreciation P400,000

The cost functions were determined using observations from 20,000 to 30,000 direct labor hours. The company expects to operate at 25,000 direct labor hours per month. The theoretical capacity per month of the company is 30,000 units. Each unit requires 2 direct labor hours. The Company applies overhead using direct labor hours.

Actual data for this month are as follows:

Variable overhead costs P87,000

Fixed overhead costs P423,000

Direct labor hours 26,000

Question 1: The entry pertaining to the volume variance if the standard direct labor hours allowed for this month was 24,000 will be

Question 2: How much is the variable spending variance if 17,500 units were produced?

Question 3: If 13,000 units were produced during the month. How much overhead costs were debited to the Work-in-Process Inventory?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Why are certain proteins needed—such as albumin and alpha and beta globulins—to transport lipids (e.g., fatty...

Mechanical Engineering
1.2K views

The position of a particle is r={(3t3−2t)i−(4t1/2+t)j+(3t2−2)k}m, where t is in seconds. Part A Determine the magnitude of the...

Economics
1.2K views

The banking system of the United States is a fractional reserve system. What dangers does this...

Geometry
1.2K views

A circle has the equation x A The center is 6 2 an B The...

Basic Math
1.2K views

Find the domain of f(z) the analytic function, graph on the z-plane.find the Re(f'(1)). (z)...

Calculus
1.2K views

2 x 6 Its derivative is f x f x The graph that correctly displays...

Accounting
1.2K views

Selected accounts from the ledger of Restoration Arts for the fiscal year ended April 30,...

Accounting
1.2K views

Whole Grain Bakery purchases an industrial bread machine for $29,500. In addition to the purchase...

Accounting
1.2K views

provide Problem and solutions for 1. Partnership 2. Dissolution Appreciate a detailed solution

Accounting
1.2K views

3-15. The City of Grafton's records reflected the following budget and actual data for the...

Accounting
1.2K views

the standard mileage rate may be used by ______________? a. a car, in subsequent years,...

Finance
1.2K views

D Question 18 2 pts Capacity refers to anything of value that can be pledged...