MCC 24 C6. (See the problem below) Pinugu Corporation is preparing its factory overhead cost budget for the third quarter of 200B. The management plans to produce 200,000 units for the said quarter. Past experience has shown that the company's product is produced at the rate of 4 units per hour. Variable rates per direct labor hour are as follows: PO.76 Indirect materials and supplies Power 1.36 2.80 Repairs and maintenance Other variable overhead 0.96 Total P5.88 Total fixed overhead cost is budgeted at P147,200. For product costing purposes, a fixed factory overhead rate of P3.20 per direct labor hour has been established. The total factory overhead cost per unit of product is A.P 1.47 В. Р11.35 С. Р36.32 D. P 2.27
MCC 24 C6. (See the problem below) Pinugu Corporation is preparing its factory overhead cost budget for the third quarter of 200B. The management plans to produce 200,000 units for the said quarter. Past experience has shown that the company's product is produced at the rate of 4 units per hour. Variable rates per direct labor hour are as follows: PO.76 Indirect materials and supplies Power 1.36 2.80 Repairs and maintenance Other variable overhead 0.96 Total P5.88 Total fixed overhead cost is budgeted at P147,200. For product costing purposes, a fixed factory overhead rate of P3.20 per direct labor hour has been established. The total factory overhead cost per unit of product is A.P 1.47 В. Р11.35 С. Р36.32 D. P 2.27
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:MCC 24 C6. (See the problem below)
Pinugu Corporation is preparing its factory overhead cost budget for the third quarter of 200B. The
management plans to produce 200,000 units for the said quarter. Past experience has shown that the
company's product is produced at the rate of 4 units per hour. Variable rates per direct labor hour are as
follows:
PO.76
Indirect materials and supplies
Power
1.36
2.80
Repairs and maintenance
Other variable overhead
0.96
Total
P5.88
Total fixed overhead cost is budgeted at P147,200. For product costing purposes, a fixed factory overhead
rate of P3.20 per direct labor hour has been established.
The total factory overhead cost per unit of product is
A.P 1.47
В. P11.35
С. Р36.32
D. P 2.27
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