Direct Material Rate -50% Direct labor rate - 75% Unit production - P6 per unit direct labor hours -P3.60 per Direct Labor Hour Machine Hours -P1.80 per Machine Hour Using each overhead rates mentioned above, compute the applied overhead and the total cost charges given the following related data for Job #555: direct materials costs – P13,500; direct labor costs – P7,800; units produced – 1,050 units; direct labor hours – 1,710 hours; and machine hours – 3,100 hours.

Direct Material Rate -50% Direct labor rate - 75% Unit production - P6 per unit direct labor hours -P3.60 per Direct Labor Hour Machine Hours -P1.80 per Machine Hour Using each overhead rates mentioned above, compute the applied overhead and the total cost charges given the following related data for Job #555: direct materials costs – P13,500; direct labor costs – P7,800; units produced – 1,050 units; direct labor hours – 1,710 hours; and machine hours – 3,100 hours.

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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Question

Direct Material Rate -50%

Direct labor rate - 75%

Unit production - P6 per unit

direct labor hours -P3.60 per Direct Labor Hour

Machine Hours -P1.80 per Machine Hour

Using each overhead rates mentioned above, compute the applied overhead and the total
cost charges given the following related data for Job #555: direct materials costs – P13,500;
direct labor costs – P7,800; units produced – 1,050 units; direct labor hours – 1,710 hours; and
machine hours – 3,100 hours.

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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