A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a job order costing system. The flexible budget covering next year's expected range of activity is: Direct labor hours.. Machine hours.. Variable overhead costs. Fixed overhead costs.. Total overhead costs.. 50,000 40,000 P100,000 150.000 P250.000 80,000 64,000 P160,000 150,000 P310.000 110,000 88,000 P220,000 150,000 P370.000 A predetermined overhead rate based on direct labor hours at expected actual capacity is used to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. The predetermined overhead rate per direct labor hour to be used to apply total overhead to individual jobs next year is:
A company manufactures plastic products for the home and restaurant market. The company also does contract work for other customers and utilizes a job order costing system. The flexible budget covering next year's expected range of activity is: Direct labor hours.. Machine hours.. Variable overhead costs. Fixed overhead costs.. Total overhead costs.. 50,000 40,000 P100,000 150.000 P250.000 80,000 64,000 P160,000 150,000 P310.000 110,000 88,000 P220,000 150,000 P370.000 A predetermined overhead rate based on direct labor hours at expected actual capacity is used to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. The predetermined overhead rate per direct labor hour to be used to apply total overhead to individual jobs next year is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
The predetermined
P3.70
P3.88
P3.36
P3.50
Transcribed Image Text:A company manufactures plastic products for the home and restaurant market. The
company also does contract work for other customers and utilizes a job order costing
system. The flexible budget covering next year's expected range of activity is:
Direct labor hours.
Machine hours..
Variable overhead costs..
Fixed overhead costs.
50,000
40,000
P100,000
150.000
P250,000
80,000
64,000
P160,000
150,000
P310.000
110,000
88,000
P220,000
150,000
P370,000
Total overhead costs.
A predetermined overhead rate based on direct labor hours at expected actual
capacity is used to apply total overhead. Management has estimated that 100,000
direct labor hours will be used next year. The predetermined overhead rate per direct
labor hour to be used to apply total overhead to individual jobs next year is:
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