La Loma Company produces four solvents from the same process: Wan, Tu, Tri, Por. Joint production costs are as follows: Materíals - P4,000; Labor - P3, 000 Overhead- P2, 000 Disposal cost Further per barrel at per barrel at processing price per split- off Sales price Final sales split- off costs barrel Barrels Wan 750 P10 P6.50 P2.00 P13.50 Tu 1, 000 8. 4.00 2.50 10.00 Tri 4, 000 11 7.00 4.00 15.50 Por 2,000 15 9.50 4.50 19.50 If La Loma sells the products after further processing, the following disposal costs will be incurred: C, P2.50; D, P1.00; E, P3.50; G, P6.0O. (Round all answers to the nearest peso)

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.