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: Total Cost Activities 1 Machining 2 Inspection 3 Packing Cost of direct materials Cost of direct labor Cost Drivers Machine hours (MH) Number of inspections Orders P120,000 80,000 150,000 Shalom Format of percentages: 88% Words must be in capital letters. What is the total overhead cost for Shalom Products? Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Peace 1,200 MH 800 MH 100 inspections 500 inspections 800 orders P188,000 110,000 The company sold 40 units of Shalom at P8,000 per unit. While for Peace, 20 units were sold at P7,500. 700 orders P143,000 80,000
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: Total Cost Activities 1 Machining 2 Inspection 3 Packing Cost of direct materials Cost of direct labor Cost Drivers Machine hours (MH) Number of inspections Orders P120,000 80,000 150,000 Shalom Format of percentages: 88% Words must be in capital letters. What is the total overhead cost for Shalom Products? Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Peace 1,200 MH 800 MH 100 inspections 500 inspections 800 orders P188,000 110,000 The company sold 40 units of Shalom at P8,000 per unit. While for Peace, 20 units were sold at P7,500. 700 orders P143,000 80,000
Chapter1: Financial Statements And Business Decisions
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