Reference no: EM132922503

Question - Sales: Sales through June 30, 2019, the first 6 months of the current year, are 24,000 units. Expected sales for the full year are 60,000 units. Actual sales in units for May and June and estimated unit sales for the next 4 months are as follows:

May 4,000

June 4,000

July 5,000

August 6,000

September 7,000

October 7,000

Factory Overhead: The company produced 27,000 units during the 6-month period through June 30, 2019 and expects to produce 60,000 units during the year. The actual variable factory overhead costs incurred during this 6-month period are as follows. The Controller believes that these costs will be incurred at the same rate during the remainder of 2019.

Supplies P 59,400

Electricity 27,000

Indirect Labor 54,000

Other 21,600

Total Variable Factory Overhead P 162,000

The fixed factory overhead costs incurred during the first 6 months of 2019 amounted to Php 93,000. Fixed overhead costs are budgeted for the full year as follows:

Supervision P 60,000

Property Tax 7,200

Depreciation 66,400

Other 32,400

Total Fixed Factory Overhead P 186,000

Required - Prepare the factory overhead budget for the 6 months ending December 31, 2019, presenting two figures for total variable and total fixed overhead.