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Honesty Company prepared the following budgeted information for the coming year: Factory overhead costs P 720,000 Direct material costs P1,440,000 Units of production 120,0000 units Machine hours 400,000 hours Direct labor costs P 960,000 Direct labor hours 200,000 hours REQUIRED: 1. Determine the applied overhead rates under each of the following bases. Round off percentages to one decimal point and rates to the nearest whole centavo. a. Direct materials costs b. Direct labor costs c. Units of production d. Direct labor hours e. Machine hours

Honesty Company prepared the following budgeted information for the coming year: Factory overhead costs P 720,000 Direct material costs P1,440,000 Units of production 120,0000 units Machine hours 400,000 hours Direct labor costs P 960,000 Direct labor hours 200,000 hours REQUIRED: 1. Determine the applied overhead rates under each of the following bases. Round off percentages to one decimal point and rates to the nearest whole centavo. a. Direct materials costs b. Direct labor costs c. Units of production d. Direct labor hours e. Machine hours

FINANCIAL ACCOUNTING
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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Honesty Company prepared the following budgeted information for the coming year:
Factory overhead costs P 720,000
Direct material costs P1,440,000
Units of production 120,0000 units
Machine hours 400,000 hours
Direct labor costs P 960,000
Direct labor hours 200,000 hours
REQUIRED:
1. Determine the applied overhead rates under each of the following bases. Round off
percentages to one decimal point and rates to the nearest whole centavo.
a. Direct materials costs
b. Direct labor costs
c. Units of production
d. Direct labor hours
e. Machine hours

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