The Larry plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance - P100,000; Inspection - P150,000. The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours. The following data have been assembled for use in developing a bid for a proposed job: (refer to image) Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would be * Diest maleriais P1.000 P4.C00 500 Direct lubur Mschine houre Number of inspections Direct labor hours 800 a. P2,400 b. P3,600 c. P7,400 O d. P7,750

The Larry plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance - P100,000; Inspection - P150,000. The plant currently applies overhead using direct labor hours and expected capacity of 50,000 direct labor hours. The following data have been assembled for use in developing a bid for a proposed job: (refer to image) Total expected machine hours for all jobs during the year is 25,000, and the total expected number of inspections is 1,500.Using activity-based costing and the appropriate activity drivers, the total cost of the potential job would be * Diest maleriais P1.000 P4.C00 500 Direct lubur Mschine houre Number of inspections Direct labor hours 800 a. P2,400 b. P3,600 c. P7,400 O d. P7,750

Name: The Larry plant has two categoriesof overhead: maintenance andinspect
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Description: The Larry plant has two categoriesof overhead: maintenance andinspection. Costs expected forthese categories for the comingyear are as follows: Maintenance -P100,000; Inspection - P150,000.The plant currently appliesoverhead using direct labor 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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