The following is the budgeted information of 3Z Company for the year 2021:Service DepartmentsProducing DepartmentsS1S2P1P2Budgeted overhead beforedistribution of servicecostsDirect labor hoursMachine hoursNumber of employeesArea occupied (sq ft)P300,000.00 P 150,000.00 P1,500,000.00 P750,000.006,00045,4002530,00033,2505,00015050,0001384,2001,500Actual prime cost for the last quarter Of 2021 in the production of 15,000 units of Product MM issummarized below:P1P211,250 hrsDirect labor hours 1,200 DLh @ P35 6,550 DLH @ P35Machine hours1,250 hrsMaterialsP75 per unitP5 per unitAdditional information:• The company computes predetermined overhead rates based on machine hours in P1 anddirect labor hours in P2, after distributing service costs using direct method.Sl costs are distributed based on area occupied and S2 costs are based on number ofemployees.Required: Compute for the total production costs of Product MM.

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The following is the budgeted information of 3Z Company for the year 2021: Service Departments Producing Departments P1 S1 S2 P2 Budgeted overhead before distribution of service costs P300,000.00 P 150,000.00 P1,500,000.00 P750,000.00 Direct labor hours Machine hours Number of employees Area occupied (sq ft) 6,000 45,400 25 30,000 33,250 5,000 150 50,000 13 4,200 1,500 Actual prime cost for the last quarter Of 2021 in the production of 15,000 units of Product MM is summarized below:

The following is the budgeted information of 3Z Company for the year 2021: Service Departments Producing Departments P1 S1 S2 P2 Budgeted overhead before distribution of service costs P300,000.00 P 150,000.00 P1,500,000.00 P750,000.00 Direct labor hours Machine hours Number of employees Area occupied (sq ft) 6,000 45,400 25 30,000 33,250 5,000 150 50,000 13 4,200 1,500 Actual prime cost for the last quarter Of 2021 in the production of 15,000 units of Product MM is summarized below:

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.2.6P: Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with...

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