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Factory Overhead
Fixed (acquisition cost/lifespan)
Depreciation of Deep fryer 410.56 410.56
Depreciation of Gas stove 3.85 3.85
Total Fixed FOH 414.41
Variable
Paper bag 163.80 163.80
Oil 935.00 935.00
Burger wrapper 110.00 110.00
Tissue 42.25 42.25
Total Variable FOH 1251.05
TOTAL 1665.46 1665.46
Standard overhead rate per hour = total standard factory overhead cost/standard direct labor hrs
1665.46/412 = Php 4.04
Standard overhead costs applied to WIP = actual units produced x standard labor hrs per unit x standard overhead rate per hr
566*0.7273*4.04 = 1,663.07
Variable factory overhead cost per unit = total variable FOH / standard direct labor hours
1251.05/412 = 3.04
Factory Overhead
1665.46 1663.07
2.39 (Underapplied)
Actual
Month Actual operating days/month
Standard units/month Actual labor cost per day
given 1600/17
July 17 693 94.12
August 12 700 133.33
September 13 740 123.08
Assumptions:
the actual costs of deep fryer and gas stove are assumed to be the standard fixed costs
the life span of deep fryer is 9 months
the life span of gas stove is assumed to be 13 years or 156 months
the actual factory overhead costs for variable items are assumed to be the standard factory overhead costs
nit x standard overhead rate per hr
Favorable
Actual
Standard cost per month Actual labor (rate) cost/hr Actual # of labor hours worked
94.12/24 1600/3.9216
1976.47 3.92 408
2666.67 5.56 288
2461.54 5.13 312
overhead costs
1665.83
1663.07
2.75999999999999 Unfavorable
0.37
2.76
-2.39
Standard hours per unit Standard # of labor hours allowed Standard Cost
2.26/3.1075 566*0.7273 411.63*3.1075
0.7273 412 1279.16
0.6857 388 1279.15
0.6486 367 1279.17
Actual Cost
given
1600.00
1600.00
1600.00
AUG
Actual Cost
Factory Overhead
Fixed (acquisition cost/lifespan)
Depreciation of Deep fryer 410.56
Depreciation of Gas stove 3.85
Total Fixed FOH 414.41
Variable
Paper bag -
Oil -
Burger wrapper 64.00
Tissue -
Straw 15.50
Total Variable FOH 79.50
TOTAL 493.91
Standard overhead rate per hour = total standard factory overhead cost/standard direct labor hrs
539.91/388 = Php 1.39
Standard overhead costs applied to WIP = actual units produced x standard labor hrs per unit x standard overhead rate per hr
196*0.6857*1.39 = 186.81
Variable factory overhead cost per unit = total variable FOH / standard direct labor hours
125.50/388 = 0.32
Factory Overhead
493.91 186.81
307.1 (Underapplied)
Actual
Month Actual operating days/month
Standard units/month
given
July 17 693
August 12 700
September 13 740
Assumptions:
the actual costs of deep fryer and gas stove are assumed to be the standard fixed costs
the life span of deep fryer is 9 months
the life span of gas stove is assumed to be 13 years or 156 months
the actual factory overhead costs for variable items are assumed to be the standard factory overhead costs
Standard Cost
410.56
3.85
414.41
-
-
110.00
-
15.50
125.50
539.91
Actual
Actual labor cost per day Standard cost per month
Actual labor (rate) cost/hr
Actual # of labor hours worked
1600/17 94.12/24 1600/3.9216
94.12 1976.47 3.92 408
133.33 2666.67 5.56 288
123.08 2461.54 5.13 312
186.81
270.61 Favorable
-36.49
270.61
-307.10
Standard hours
Standard
per unit# of labor hours
Standard
allowed
Cost
2.26/3.1075 566*0.7273411.63*3.1075
0.7273 412 1279.16
0.6857 388 1279.15
0.6486 367 1279.17
Actual Cost
given
1600.00
1600.00
1600.00
SEPT
Actual Cost
Factory Overhead
Fixed (acquisition cost/lifespan)
Depreciation of Deep fryer 410.56
Depreciation of Gas stove 3.85
Total Fixed FOH 414.41
Variable
Paper bag -
Oil 885.00
Burger wrapper -
Tissue 64.00
Tide 9.25
Pride 23.40
Straw -
Total Variable FOH 981.65
TOTAL 1396.06
Standard overhead rate per hour = total standard factory overhead cost/standard direct labor hrs
439.91/168 = Php 2.61
Standard overhead costs applied to WIP = actual units produced x standard labor hrs per unit x standard overhead rate per hr
168*0.6486*2.61 = 284.40
Variable factory overhead cost per unit = total variable FOH / standard direct labor hours
79.50/168 = 0.47
Factory Overhead
1396.06 284.4
1111.66 (Underapplied)
Actual
Month Actual operating days/month Standard units/month
given
July 17 693
August 12 700
September 13 740
Assumptions:
the actual costs of deep fryer and gas stove are assumed to be the standard fixed costs
the life span of deep fryer is 9 months
the life span of gas stove is assumed to be 13 years or 156 months
the actual factory overhead costs for variable items are assumed to be the standard factory overhead costs
Standard Cost
410.56
3.85
414.41
-
-
64.00
-
-
-
15.50
79.50
493.91
Actual
Actual labor cost per day Standard cost per month Actual labor (rate) cost/hr
1600/17 94.12/24
94.12 1976.47 3.92
133.33 2666.67 5.56
123.08 2461.54 5.13
ry overhead costs
actual production level 465.62
284.4
181.22