6. Harem Company uses an annual cost formula for overhead of P72,000+ P1.60 for each direct labor hour worked. For the upcoming month Karla plans to manufacture 96,000 units. Each unit requires five minutes of direct labor. Harem Company's budgeted overhead for the month is c. P 84,800 d. P774,000 a. P 12,800 b. P 18,800

6. Harem Company uses an annual cost formula for overhead of P72,000+ P1.60 for each direct labor hour worked. For the upcoming month Karla plans to manufacture 96,000 units. Each unit requires five minutes of direct labor. Harem Company's budgeted overhead for the month is c. P 84,800 d. P774,000 a. P 12,800 b. P 18,800

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Description: 6. Harem Company uses an annual cost formula for overhead of P72,000 + P1.60 for each direct laborhour worked. For the upcoming month Karla plans to manufacture 96,000 units. Each unit requiresfive minutes of direct labor. Harem Company's budgeted o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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6. Harem Company uses an annual cost formula for overhead of P72,000 + P1.60 for each direct labor
hour worked. For the upcoming month Karla plans to manufacture 96,000 units. Each unit requires
five minutes of direct labor. Harem Company's budgeted overhead for the month is
a. P 12,800
b. P 18,800
c. P 84,800
d. P774,000

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