C. 60% of overtime work is because of rush jobs d. Factory overhead is applied at 80% of direct labor
Direction: If the problem is silent about the overtime premium use the minimum 25%.
Half human, half zombie for president manufacturing corp. A newly established business had the following transaction for the 1st month of its operation:
A. Purchase of raw materials on account amounting to P650,000
B. Details for computation of payroll for the month are as follows:
| DIRECT LABOR | INDIRECT LABOR |
SELLING AND ADMIN PERSONNEL |
|
| NUMBER OF EMPLOYEES | 30 | 6 | 12 |
| RATE PER DAY | P600 | P800 | P500 |
| TOTAL NUMBER OF REGULAR HOURS WORKED |
5,280 | 1,056 | 2,112 |
| TOTAL NUMBER OF OVERTIME | 125 | 10 | 0 |
| TAX WITHHELD | P0.00 | P0.00 | P0.00 |
| MANDATORY CONTRIBUTIONS - EMPLOYEE | P23,600 | P5,320 | P9,600 |
| MANDATORY CONTRIBUTIONS - EMPLOYER |
P43,820 | P9,880 | P17,820 |
C. 60% of overtime work is because of rush jobs
d. Factory overhead is applied at 80% of direct labor
e. Only 90% of raw materials available for use was issued to production (25% indirect materials)
f. 20% of total manufacturing cost was still in the work in process inventory
g. 95% of finished goods was sold with a gross profit rate of 40%
h. Other factory overhead incurred amounts to 96,500
Requirement: Compute for overtime pay allocated to direct labor
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