Question
BBB Company budgeted total variable overhead a P180,000 for the current period. In addition, the company budgeted costs for factory rent at P215,000, depreciation on
BBB Company budgeted total variable overhead a P180,000 for the current period. In addition, the company budgeted costs for factory rent at P215,000, depreciation on office equipment at P12,000, office rent at P92,000 and depreciation of factory equipment at P38,000. All these costs were based upon estimated machine hours of P80,000. At the end of the period, the factory overhead control account had a balance of P387,875. Actual machine hours were 70,000.
1.) The over or under applied overhead for the period is:
P9,000 under | |
| P82,000 over |
| P82,000 under |
| P9,000 over |
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