PROBLEM 1: Sakit Ng Ulo Co. provides the following data regarding production in July: @ 100% Budget @ 80% Budget ‘Actual Direct Materials 30,000 24,000 23,600 Direct Labor 60,000 48,000 52,500 Factory Overhead 280,000 250,000 252,500 | Direct Labor Hours 5,000 4,000 4,200 Units Produced 2,500 2,000 2,000 Required: a). FOH rate and under/over-applied overhead using Direct Material Cost as base @ 95% budget. b) FOH rate and under/over-applied overhead using Direct Labor Cost as base @ 95% budget. ©) FOH rate and under/over-applied overhead using Direct Labor Hours as base @ 95% budget. d) FOH rate and under/over-applied overhead using Units of Production as base @ 95% budget.© compute fy the Fixed OH using 7 High-Low Point Method Variable DH rate = 2DOOD- r2d:000 = 30,000 | Cb) 2,860 - 2,600 Sap = |Peo/ as 7 LO @ : ee < i: ie ——— @ Mignest : aly = 280/000 - (bx 2,96) * 2H1OHD- 18D, 0D = [¥ 0, ood } @ Lowect : Pius = 2svi0pe- (vox 2106p) = 29:00¥~ 1201050 = [P 30.00 | a @® tavie (s* pate = et-or Budg- OH / Ett. Base ) DMC pic DL up ett. Fived OH =F 130,000 ? 30100 7 120,000 7 BD, TOD ae : \42, Od 1421 60d (42, 50> 142, $00 1 . away ed. of =F 24250? P 272, 4 272, 0d % 272, ywideby: Et. Base 2150 S3105d 4 OD 2,34 by Cbae x 0.4C) ic 494.07 % 7ST. SF Fig. 34 vee ce ae of DLC. yer DLE gee wit — eS —————— @® Forma *r under /ovr-applicd OH 7 PMc PLC PL 7 Actual FoH — -P.262150 7 26250 1 2621500 oem Lees: repped honal » 70 Pa) 225 49.04 190 1460.98 240,984 229 , 46d Onder-applicd OFF 24, ¢50.% F 1,513.28 P nse F 2/000 lela easeChapter 8 Accounting for Factory Overhead _ | 239 Problem 6 . ‘ The ABC Company has two service departments and two producing departnients Service Departments’ to costs: 7 ‘5 Department | - Repair P_ 14,000 Department 2- Cafetéria 11,000 Producing Departments’ Factory OH Costs : Department A- Machinery _ 52,500 _ Department B- Assembly 48,000 dditionial information Department Square Feet Est. Direct Labor Hours Repair 1,500 ; 3,500 Cafeteria 1,800 - - 1,200. Machinery .- © 2,000 on: 2,300. - Assembly 3,000 1,700 Total 8,300 FE 8,700 The costs of the Repair Department are allocated on the basis of square feet. The costs of the Cafeteria Department are allocated on the basis of estimated direct labor hours. The.producing departments use-estimated .direct labor hours: 1,500 in Department A and 1,250 in Department B, Required: Allocate the total costs of the service.departmenits to:the producing departments ( compute the departments’ factory rate) by using the following: 1. Direct method .2. Step method - start with the Repair Department -© direct method Prducing Service Machinery Agembly Repair Cafeteria Edt. FO? 2,000 F 48, 00d PH, OED F 1, OOD i Alloc. FO Pepaviadt) = ¢ , LOD 40d (1410) cafe (pat) & , 328 4164S Civovv) Tal et - b4, 425 P bl, OFF oe a FO Divideby: Ge 11 SD 1,200 Fo eate PAr9c FG. &o pey_DLH per_DLH ao he S method Os EP ne A a —— ed. FO 752, 50d ? 46, ODD Pr 4,00 ? ODD j t Alloc. FO + S Repel (Font IF. US oT. 141000 adneck | “path of C) a (4.000) 3,705. pea cafelcia (rae i, 7S.) L dagogen xt) 4ST. 6,250 cn ? —— pis gi Sed dee | Taal 1. FO FOS /0F8.SS YO W2b.4T = a | ivideby: Base 1500 12 ee ene tote P43. 38 7 48-34 ter DLH ter DU =. st @® Agedraic method ne services jpvided by ei, Cafe A iv @ 30D 4 Uy .eah used Sida pe { 1S 7 wT yl & A 4 PO) magnineny 2,950 + 20.4 2300 + 30.07% sonbly 31000 + ys Rh HID + 2G iGo + 10d FSD + [onesRepair = M,opD + 4b.b7%l (tofetaia ) cof = Wig + 26.499 ( eepair) | —_ Re 00d + 0.yout (MOO + 0.2047 R ) Re Mio + 5,144.70 + 0. 1295954AR 1e- v.3SPSHAR = Wo + $1197.90 p. s7e4b4SIR = 14, 197.70 edie Te 0. 676404 61 0. v7b4ud S) le = weet C= Wood 4 v.204F (21,30. & ) \ | C= Mop t C1FTG- SUUOKT | [c= 1b, 798.55 | ML Cc | et. FD F L2, Sov P 4g, OOD | ee ' | t 14050 F MoD ) tera Gnd 1420.20 Herd 4 ( 21¢90.00) oma 7 coke Bbiio sy ias.48 3 802-02 7 830.50 4 eile ees awa C16, 7%.cr) 7 stot ai.ro fbr ObU.94 F 61499. be z oe aS Dividubyy? Bae, 150d a) fs | Po kate, 72.71 744 1c per DU ber DL SS ——