The following are the selected data for Bora Manufacturing Company for the year 2017:

BUDGETED

Direct labor hours-260,000

Fixed overhead-P585,000

Variable overhead-P1,092,000

Total-P1,677,000

ACTUAL

Direct labor hours-248,300

Fixed overhead-P578,4000

Variable overhead-P1,039,940

Total-P1,618,340

1. What is the spending variance? Indicate if Favorable or Unfavorable.

Example of your answer: 1,000 Favorable

2.What is the net variance of spending and volume variance? Indicate to your answer if Favorable or Unfavorable. Follow example of the answer in no 1

3.What is the fixed volume variance?

4.What is the over or underapplied overhead for the year? Indicate if overapplied or underapplied.

Example of your answer: 1,000 Underapplied

In applying the manufacturing overhead, Tootsie Apparel uses direct labor hours and the overhead application rate in 2018 was P8.60 per hour based on anticipated fixed costs of P348,000 and anticipated variable costs of P684,000 with an expected volume of 120,000 labor hours. The company actually incurred 115,800 hours for a fixed overhead of P348,000 and variable overhead of P637,880.

1. What is the total variance? Indicate if favorable or unfavorable

2.What is the amount of fixed volume variance? Indicate if favorable or unfavorable.

3.How much is the under or overapplied manufacturing overhead for the year>

4.When a debit balance occur in the manufacturing overhead control account, cost of sales is

5.The overstatement of cost of sales shall understate

Answer rating: 100% (QA)

Bora Manufacturing Company Overhead Variances 2017 1 Spending Variance Budgeted total overhead P1677000 Actual total overhead P1618340 Spending varian... View the full answer