Rebadulla, Charl’s Micheal I.

SBENT-3S

Computation:
a. Units of Production:
Estimated Factory Overhead Rate = Estimated Factory Overhead Costs / Estimated units of pro
= P 108,000.00 / 36,000 units
= P 3.00 per unit
b. Direct material cost
Estimated Factory Overhead Rate = Estimated Factory Overhead Costs / Estimated Direct mate
=P 108,000.00 / P 45,000.00 x 100
= 2.4 x 100
= 240% of direct material costs
c. Direct Labor Cost
Estimated Factory Overhead Rate = Estimated Factory Overhead Costs / Estimated Direct Labo
= P 108,000.00 / P 120,000.00 x 100
= 0.9 x 100
= 90% of direct labor cost
d. Direct Labor Hours
Estimated Factory Overhead Rate = Estimated Factory Overhead Costs / Estimated Direct Labo
= P 108,000.00 / 24,000 direct labor hours
= P 4.50 per direct labor hour
e. Machine Hours
Estimated Factory Overhead Rate = Estimated Factory Overhead Costs / Estimated Machine Ho
= P 108,000.00 / 800 machine hours
= P 135.00 per machine hour

2. Determine the following

a. The predetermined factory overhead rate.
b. The applied factory overhead
c. The over or under applied factory overhead.

Solution: a. Direct labor hour

factory Overhead rate = total budgeted Overhead / Estimated Direct Labor Hours
= ₱47,000.00 / 1,000.00 hours
= ₱47.00 per direct labor hour

b. Work in Process - ₱47,000.00

Factory Overhead - Applied ₱47,000.00
To record FOH applied
to production.

b. Factory Overhead - Appl ₱47,000.00

Underapplied FOH 2,200.00
Factory Overhead - Control ₱49,200.00
To record underapplied
FOH
 sts / Estimated units of production

sts / Estimated Direct materials cost x 100

sts / Estimated Direct Labor Cost x 100

sts / Estimated Direct Labor Hours

sts / Estimated Machine Hours

ated Direct Labor Hours