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Based on normal capacity operations, Sta. Ana Company employs 25 workers in its Refining Department, working 8 hours a day, 20 days per month at a wage rate of P6 per hour. At normal capacity, production in the department is 5,000 units per month. Indirect materials average PO.25 per direct labor hour; indirect labor cost is 12½% of direct labor cost; and other overhead are P0.15 per direct labor hour. The flexible budget at the normal capacity activity level follows: Direct materials Direct labor Fixed factory overhead P 4,000 24,000 1,200

Based on normal capacity operations, Sta. Ana Company employs 25 workers in its Refining Department, working 8 hours a day, 20 days per month at a wage rate of P6 per hour. At normal capacity, production in the department is 5,000 units per month. Indirect materials average PO.25 per direct labor hour; indirect labor cost is 12½% of direct labor cost; and other overhead are P0.15 per direct labor hour. The flexible budget at the normal capacity activity level follows: Direct materials Direct labor Fixed factory overhead P 4,000 24,000 1,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Indirect materials Indirect labor Other overhead Total Cost per unit O P20,760 1,000 O P30,160 3,000 600 P 33,800 The total production cost for one month at 80% capacity is P 6.76
Transcribed Image Text:Indirect materials Indirect labor Other overhead Total Cost per unit O P20,760 1,000 O P30,160 3,000 600 P 33,800 The total production cost for one month at 80% capacity is P 6.76
Based on normal capacity operations, Sta. Ana Company employs 25 workers in its Refining Department, working 8 hours a day, 20 days per month at a wage rate of P6 per hour. At normal capacity, production in the department is 5,000 units per month. Indirect materials average PO.25 per direct labor hour; indirect labor cost is 12%2% of direct labor cost; and other overhead are PO.15 per direct labor hour. The flexible budget at the normal capacity activity level follows: Direct materials Direct labor Fixed factory overhead P 4,000 24,000 1,200
Transcribed Image Text:Based on normal capacity operations, Sta. Ana Company employs 25 workers in its Refining Department, working 8 hours a day, 20 days per month at a wage rate of P6 per hour. At normal capacity, production in the department is 5,000 units per month. Indirect materials average PO.25 per direct labor hour; indirect labor cost is 12%2% of direct labor cost; and other overhead are PO.15 per direct labor hour. The flexible budget at the normal capacity activity level follows: Direct materials Direct labor Fixed factory overhead P 4,000 24,000 1,200
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