A Company manufactures two products: Shalom and Peace. During the year, it produced 80 Shalom and 60 Peace products and incurred estimated overhead costs of P350,000. An analysis of estimated overhead costs reveals the following activities: Activities 1 Machining 2 Inspection 3 Packing Cost of direct materials Cost of direct labor Cost Drivers Machine hours (MH) Number of inspections Orders Total Cost P120,000 80,000 150,000 Shalom 1,200 MH 100 inspections 800 orders P188,000 110,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Peace 800 MH 500 inspections 700 orders P143,000 80,000 The company sold 40 units of Shalom at P8,000 per unit. While for Peace, 20 units were sold at P7,500. Format of percentages: 88% Words must be in capital letters. If the company wants to try activity-based costing, what is the overhead rate of activity 3?

A Company manufactures two products: Shalom and Peace. During the year, it produced 80 Shalom and 60 Peace products and incurred estimated overhead costs of P350,000. An analysis of estimated overhead costs reveals the following activities: Activities 1 Machining 2 Inspection 3 Packing Cost of direct materials Cost of direct labor Cost Drivers Machine hours (MH) Number of inspections Orders Total Cost P120,000 80,000 150,000 Shalom 1,200 MH 100 inspections 800 orders P188,000 110,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Peace 800 MH 500 inspections 700 orders P143,000 80,000 The company sold 40 units of Shalom at P8,000 per unit. While for Peace, 20 units were sold at P7,500. Format of percentages: 88% Words must be in capital letters. If the company wants to try activity-based costing, what is the overhead rate of activity 3?

Name: A Company manufactures two products: Shalom and Peace. During the yea
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Description: A Company manufactures two products: Shalom and Peace. During the year, it produced 80Shalom and 60 Peace products and incurred estimated overhead costs of P350,000. An analysisof estimated overhead costs reveals the following activities:Activities1

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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