Reference no: EM132902371

Boone Manufacturing, Inc.Estimated manufacturing overhead for year 1 = P30,000 + (P5.00 x DLH)

Estimated direct labor hours for year 1= 2,000 hours

Assume Boone Manufacturing had worked on two jobs, A-01 and A-02 last year. 1,200 hours of direct labor was spent on Job A-01, while 1,000 hours of direct labor was spent on Job A-02. The actual manufacturing overhead was P37,000.

Answer the following (show solution):

Problem 1: Boone Manufacturing, Inc. predetermined overhead rate for Boone Manufacturing is:

Problem 2: What is the expected manufacturing overhead for an actual level of activity equal to 2,200 direct labor hours?

Problem 3: What was the amount of overhead applied to Job A-01?

Problem 4: What is the total under (over) applied overhead?

Problem 5: What is the total spending variance?

Problem 6: What is the total production variance?