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Question - Mary Rose Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to be P550,000 for the year, and machine usage is estimated at 250,000 hours. In the month of January, P52,000 of overhead costs are incurred and P10,000 machine hours are used. For the remainder of the year, P548,000 of overhead costs are incurred and 240,000 machine hours are worked.
Required -
a) Determine the amount if applied factory overhead for the year.
b) Determine the over or under applied overhead at December 31.
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