xercise 5-3. FACTORY OVERHEAD RATES 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: 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. Direct materials costs Direct labor costs Units of production Direct labor hours Machine hours
Exercise 5-3. FACTORY OVERHEAD RATES
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:
- 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.
- Direct materials costs
- Direct labor costs
- Units of production
- Direct labor hours
- Machine hours
- Using each overhead rates mentioned above, compute the applied overhead and the total
cost charges given the following related data for Job #555: direct materials costs – P13,500;
direct labor costs – P7,800; units produced – 1,050 units; direct labor hours – 1,710 hours; and
machine hours – 3,100 hours.
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