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.