Question
Jaguar Machines uses two rates to apply overhead to jobs. One rate is based on material cost, the other on machine time. The following data
Jaguar Machines uses two rates to apply overhead to jobs. One rate is based on material cost, the other on machine time. The following data relate to 2014.
Budget
Materials-relatedoverheadP 1,280,000
Machine-related overhead2,200,000
Cost of materials used onjobs3,200,000
Machine hours400,000
Data related to three jobs worked in June follow:
Job X2Job X3Job X4
MaterialsP42,000P164,000P 78,000
Directlabor32,00026,00036,000
Machinehours17,0009,0005,800
Actual materials related to overhead was P118,400 andactual machine related overhead was P185,600. The total amount of overhead variance is
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