Reference no: EM133161429

Question 1 - Nil Co. uses a predetermined factory overhead application rate based on direct labor cost.  For the year ended December 31, Nil's budgeted factory overhead was P600,000 based on a budgeted volume of 50,000 direct labor hours at a standard direct labor rate of P6 per hour.  Actual factory overhead amounted to P620,000 with actual direct labor cost of P325,000.  For the year, over applied factory overhead was?

Question 2 - For the period just ended, LAMBANA CO. budgeted its variable overhead at P40 per direct labor hour and fixed overhead at P480,000.  Budgeted service contract was 8,000 and the service hours which was the basis for allocation of variable and the fixed overhead was budgeted at .80 hour per contract.  The actual results for the period were: fixed overhead, Ph552,000; variable overhead, Ph 283,480; contracts served, 7,460; direct labor hours used, 5,595. Compute the budgeted variable overhead for the actual volume attained.