Honesty Company prepared the following budgeted information for the coming year: Factory overhead costs P 720,000 Direct material costs P1,440,000 Units of production 120,0000 units Machine hours 400,000 hours Direct labor costs P 960,000 Direct labor hours 200,000 hours REQUIRED: 1. Determine the applied overhead rates under each of the following bases. Round off percentages to one decimal point and rates to the nearest whole centavo. a. Direct materials costs b. Direct labor costs c. Units of production d. Direct labor hours e. Machine hours
Honesty Company prepared the following budgeted information for the coming year: Factory overhead costs P 720,000 Direct material costs P1,440,000 Units of production 120,0000 units Machine hours 400,000 hours Direct labor costs P 960,000 Direct labor hours 200,000 hours REQUIRED: 1. Determine the applied overhead rates under each of the following bases. Round off percentages to one decimal point and rates to the nearest whole centavo. a. Direct materials costs b. Direct labor costs c. Units of production d. Direct labor hours e. Machine hours
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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Honesty Company prepared the following budgeted information for the coming year:
Direct material costs P1,440,000
Units of production 120,0000 units
Machine hours 400,000 hours
Direct labor costs P 960,000
Direct labor hours 200,000 hours
REQUIRED:
1. Determine the applied overhead rates under each of the following bases. Round off
percentages to one decimal point and rates to the nearest whole centavo.
a. Direct materials costs
b. Direct labor costs
c. Units of production
d. Direct labor hours
e. Machine hours
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