Problem 16 Factory Overhead Variance Wonder uses the following equation to budget its factory overhead: FOH...

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Problem 16 Factory Overhead Variance Wonder uses the following equation to budget its factory overhead: FOH = P1,200,000+ P2 per direct labor hour Wonder has budgeted 600,000 direct labor hours for the year. Actual results were 640,000 direct labor hours and P2,498,000 total factory overhead. Required: 1. Compute the predetermined factory overhead rate. 2. Compute the total factory overhead applied for the year. 3. Compute the over or under-applied factory overhead. 4. Compute the budget overhead variance 5. Compute the idle capacity variance. Problem 16 Factory Overhead Variance Wonder uses the following equation to budget its factory overhead: FOH = P1,200,000+ P2 per direct labor hour Wonder has budgeted 600,000 direct labor hours for the year. Actual results were 640,000 direct labor hours and P2,498,000 total factory overhead. Required: 1. Compute the predetermined factory overhead rate. 2. Compute the total factory overhead applied for the year. 3. Compute the over or under-applied factory overhead. 4. Compute the budget overhead variance 5. Compute the idle capacity variance.

Answer rating: 100% (QA)

Answer 1 To compute the predetermined factory overhead rate we can use the given equation FOH P12000... View the full answer