DIRECT LABOR & FACTORY OVERHEAD

Quiz #3 LABOR

The following are the employees with their respective position and monthly salary of CRV Lines.
1. Antonio Reyes, FactorySupervisor P40,000
2. Remegio Dela Cruz, office clerk 30,000
3. Juan De los Santos, salesman 35,000
4. Ernesto Lopez, factory worker 18,000
5. Enrico Yap, factory worker 20,000
6. Edgardo Carpio, factory worker 15,000

Referring to the problem above answer the following: (support your answer if necessary)

1. SSS contribution of Remegio Dela Cruz

2. Philhealth Contribution of Ernesto Lopez

3. Employer’s share for the SSS of Edgardo Carpio

4. Employer’s share in the Philhealth of Juan Delos Santos

5. Pag-ibig contribution of Enrico Yap

6. Withholding tax of Edgardo Carpio

7. Withholding tax of Juan Delos Santos

8. Net pay of Juan delos Santos

9. Entry to record the payroll of Edgardo Carpio

10. Entry to record the employer’s share of Enrico Yap

Quiz # 4: FACTORY OVERHEAD

Show supporting computations on the spaces provided. No solution, no points

Baywalk Co has departmentalized its operations into two service departments. General Factory
Office and Employee Relations and three producing departments, Mixing, Fabricating and
Finishing. General Factory office is allocated first on the basis of labor hours, and Employee
 Relations is allocated second on the basis of number of employees. The company provides the
following estimated data:

General Employee
Factory Relations Mixing Fabricating Finishing
office
OH costs 48,724.64 84,205.80 259,376.81 286.840.58 340,657.17
DLH 10,000 12,000 23,200 25,600 19,200
# of 60 30 144 228 168
employees
MH 63,540 105,800 85,725

Department Equipment Book Value Space Occupied

General Factory office P20,000 1,000 sq.ft
Employee Relations 25,000 800
Mixing 130,000 4,000
Fabricating 175,000 2,000
Finishing 110,000 3,000

Determine the total factory overhead (including service department costs) for each producing
department using:
1. Direct method
2. Step method
3. Algebraic method

The records of Denver Corporation revealed the following data for the current year.

Work in Process $ 73,150

Finished Goods 115,000
Cost of Goods Sold 133,650
Direct Labor 111,600
Direct Material 84,200

4. Refer to Denver Corporation. Assume, for this question only, actual overhead is
$98,700 and applied overhead is $93,200. Manufacturing overhead is
overapplied/underapplied by:

5. Refer to Denver Corporation. Assume that Denver has underapplied overhead of

$37,200 and that this amount is immaterial. What journal entry is needed to close the
overhead account? (Round decimals to nearest whole percent.)
 6. Refer to Denver Corporation. Assume that Denver has overapplied overhead of $10,000
and that this amount is immaterial. What is the balance in Cost of Goods Sold after the
overapplied overhead is closed?

Wonderkind Company set normal capacity at 60,000 machine hours. The expected operating
level for the period just ended was 45,000 hours. At this expected actual capacity, variable
expenses were estimated to be P29,250 and fixed expenses, P18,000. Actual results show that
47,000 machine hours were used and that actual factory overhead totaled P47,100 during the
period.
7. Compute the amount of factory overhead charged to production if the company used the
normal capacity rate.

8. Compute the amount of factory overhead charged to production if the company used the
expected actual capacity rate.

In manufacturing roller blades, Super Store Co’s plant used 400 direct labor hours, 500 machine
hours and 20 set ups. The following overhead costs were taken from the factory accounts.

Overhead expenses Volume activities

Machining center P120,000 20,000 machine hrs
Set up center 40,000 100 set ups
Direct labor hours 4,000

The plant was using a factory wide overhead rate based on direct labor hours. A new ABC system
will use machine hours in the Machining Department and number of set ups in the Set up
Department as cost drivers
The overhead cost assigned to roller blades under:
9. Direct labor hours
10. ABC System