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Romaine Inc. uses a standard cost accounting system. The standard factory overhead rate was computed based on normal capacity: Budgeted variable expenses 12,000 Budgeted fixed
Romaine Inc. uses a standard cost accounting system. The standard factory overhead rate was computed based on normal capacity:
Budgeted variable expenses | 12,000 |
Budgeted fixed expenses | 8,000 |
TOTAL | 20,000 |
FOH Rate (P 20,000/ 20,000 hours) | P 1.00 per DLH |
Two labor hours are required to manufacture each finished unit. During the month, 9,500 units were completed. There were no opening or closing work-in-process inventories. 18,500 labor hours were worked and actual factory overhead was P18,000.
Amount (2 decimal places) | U or F | |
FOH Spending Var | ||
FOH Efficiency Var | ||
FOH Product Vol. Var | ||
FOH Flexible Budget Var | ||
Total FOH Var |
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