GE Corp. has the following data for the year 2030: Estimated FOH Estimated machine hours P40,000...

 

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GE Corp. has the following data for the year 2030: Estimated FOH Estimated machine hours P40,000 (P2x Mhr) 5,000 Assume that GE Corp. has work on three jobs: 01, 02 and 03 last year, 1,500 machine hours were spent for job 01; 2,000 machine hours for job 02 and 1,700 machine hours for job 03. The actual factory overhead is P56,000 using 5,200 machine hours. Required: 1. What is the predetermined factory overhead rate? 2 What is the expected factory overhead for an actual level of activity of 5,200 machine hours? 3. What is the factory overhead applied to each job? 4. What is the total over or under-applied factory overhead? 5. How much is the spending variance? 6. How much is the idle capacity variance? GE Corp. has the following data for the year 2030: Estimated FOH Estimated machine hours P40,000 (P2x Mhr) 5,000 Assume that GE Corp. has work on three jobs: 01, 02 and 03 last year, 1,500 machine hours were spent for job 01; 2,000 machine hours for job 02 and 1,700 machine hours for job 03. The actual factory overhead is P56,000 using 5,200 machine hours. Required: 1. What is the predetermined factory overhead rate? 2 What is the expected factory overhead for an actual level of activity of 5,200 machine hours? 3. What is the factory overhead applied to each job? 4. What is the total over or under-applied factory overhead? 5. How much is the spending variance? 6. How much is the idle capacity variance?

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To answer these questions we need to follow these steps 1 Calculate the predetermined factory overhe... View the full answer