ABC Company has two departments and uses a job-order costing system. ABC applies overhead in Department 1 based on machine hours and on direct labor cost in Department 2. The following information is available for April:   Department 1 Department 2 Machine hours 2,500 1,000 Direct labor cost P667,500 P345,000 Applied overhead P825,000 P776,250   Raw materials used during April amounted to P975,000. 15% of the materials used was considered indirect.   1. How much is the total manufacturing cost for April?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ABC Company has two departments and uses a job-order costing system. ABC applies overhead in Department 1 based on machine hours and on direct labor cost in Department 2. The following information is available for April:

 

Department 1

Department 2

Machine hours

2,500

1,000

Direct labor cost

P667,500

P345,000

Applied overhead

P825,000

P776,250

 

Raw materials used during April amounted to P975,000. 15% of the materials used was considered indirect.

 

1. How much is the total manufacturing cost for April?

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