Reference no: EM132752369

Question: 1. Siony Company budgeted factory overhead at P255,000 for the period for Dept. A based on a budgeted volume of 50,000 machine hours. At the end of the period, the actual factory overhead was P281,000 and actual machine hours were 52,500

Required: Calculate the applied factory overhead and the over- or underapplied amount for the period.

2. Verbo Company assembles and sells hand drills All parts are purchased and the cost of the parts per drill total P50. Labor is paid on the basis of P32 per drill assembled. Because the company handles only one product, the unit cost base is used for applying factory overhead at a predetermined rate. Estimated factory overhead for the coming period based on a production of 30,000 drills, is as follows:

Indirect Materials P220,000

Indirect Labor 240,000

Light and Power 30,000

Depreciation 25,000

Miscellaneous 55,000

During the period, actual factory overhead was P561,600 and 29,000 drills were assembled. These units were completed but not yet transferred to the finished goods storeroom.

Required: 1. Prepare the entries to record the preceding information

2. Determine the amount of over-or underapplied overhead.