C. ProrationD. Proration with direct-cost allocation11. Gerry's Electronics manufactures mouses for computers. In April, the two productiondepartments had budgeted allocation bases of P5,000 machine hours in Department 1and 2,500 direct manufacturing labor hours in Department 2. The budgetedmanufacturing overheads for the month were P23,000 and P25,000, respectively. ForJob 100, the actual costs incurred in the two departments were as follows:Department 1P44,000Department 2Direct materials purchased on account71,000Direct materials used13,0005,400Direct manufacturing laborIndirect manufacturing labor21,00021,4004,4003,600Indirect materials used3,0001,9006,500400Lease on equipment1,500Utilities500Job 100 incurred 500 machine hours in Department 1 and 150 manufacturing laborhours in Department 2. The company uses a budgeted departmental overhead ratefor applying overhead to production.What is the budgeted manufacturing overhead rate for Department 1?P4.60 per hourA.B.P5.00 per hourP9.20 per hourD. P10.00 per hourC.

Overheads means all type of indirect costs that are being incurred for production and manufacturing.…

D. Proration with direct-cost allocation 11. Gerry's Electronics manufactures mouses for computers. In April, the two production departments had budgeted allocation bases of P5,000 machine hours in Department 1 and 2,500 direct manufacturing labor hours in Department 2. The budgeted manufacturing overheads for the month were P23,000 and P25,000, respectively. For Job 100, the actual costs incurred in the two departments were as follows: Department 1 P44,000 Department 2 71,000 Direct materials purchased on account Direct materials used 13,000 5,400 Direct manufacturing labor Indirect manufacturing labor Indirect materials used 21,400 3,600 21,000 4,400 3,000 1,900 Lease on equipment 6,500 1,500 Utilities 400 500 Job 100 incurred 500 machine hours in Department 1 and 150 manufacturing labor hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production. What is the budgeted manufacturing overhead rate for Department 1? P4.60 per hour P5.00 per hour P9.20 per hour D. P10.00 per hour A. B. C.

D. Proration with direct-cost allocation 11. Gerry's Electronics manufactures mouses for computers. In April, the two production departments had budgeted allocation bases of P5,000 machine hours in Department 1 and 2,500 direct manufacturing labor hours in Department 2. The budgeted manufacturing overheads for the month were P23,000 and P25,000, respectively. For Job 100, the actual costs incurred in the two departments were as follows: Department 1 P44,000 Department 2 71,000 Direct materials purchased on account Direct materials used 13,000 5,400 Direct manufacturing labor Indirect manufacturing labor Indirect materials used 21,400 3,600 21,000 4,400 3,000 1,900 Lease on equipment 6,500 1,500 Utilities 400 500 Job 100 incurred 500 machine hours in Department 1 and 150 manufacturing labor hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production. What is the budgeted manufacturing overhead rate for Department 1? P4.60 per hour P5.00 per hour P9.20 per hour D. P10.00 per hour A. B. C.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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