4. Anakin Corporation budgeted factory overhead at P255,000 for the period for Department 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 un-applied factory overhead for the period.

5. Normal annual capacity for Enjoy Company is 48,000 units with production rates being level throughout the year. The October budget shows fixed factory overhead of P14,400 and an estimated variable factory overhead rate of P22 per unit. During October, actual output was 4,100 units, with a total factory overhead of P90,000. Required: Calculate the applied factory overhead and the un-applied factory overhead for the period.

6. Doughnut Co. set normal capacity at 60,000 machine hours. The expected operating level for the period just ended was 45,000 hours. At this expected actual capacity, variable expenses were estimated to be P292,500 and fixed expenses of P180,000. Actual results show that 47,000 machine hours were used and that actual factory overhead totaled P480,000 for the period. Required: a. Compute the predetermined factory overhead rate based on normal capacity. b. Compute the predetermined factory overhead rate based on expected actual capacity. c. Compute the amount of factory overhead charged to production if the company used the normal rate. d. Compute the amount of factory overhead charged to production if the company used the expected actual capacity rate. e. Compute the amount of un-applied factory overhead if the company used the normal capacity rate. f. Compute the amount of un-applied factory overhead if the company used the expected actual capacity rate.

7. The following information is available concerning the inventory and cost of goods sold accounts of Son Mabait Co. at the end of the most recent year:

Work in process Finished goods Cost of goods sold Direct materials P2,000 P6,000 P12,000 Direct labor 2,000 16,000 32,000 Applied factory overhead 2,000 16,000 32,000 Year-end balance P6,000 P38,000 P76,000 Applied overhead had already been closed. In all previous years, un-applied factory overhead was treated as an adjustment to cost of goods sold. Required: Prepare journal entries to close the un-applied overhead, in each of the following situations: a. Under-applied factory overhead of P6,000 that is considered immaterial/insignificant. b. Over- applied factory overhead of P6,000 that is considered immaterial/insignificant. c. Under-applied factory overhead of P6,000 that is considered material/significant. d. Over- applied factory overhead of P6,000 that is considered material/significant.