The processing of Salvation Company's manufacturing passes through two departments, Department 1 and Department 2. Overhead is applied to jobs in Dept. 1 based on 150% of direct labor cost and P18 per machine time in Dept. 2. The following information is available for Job IABF: Department 1 Department 2 Direct materials P1,590 P580 Direct labor cost ? P48 Direct labor hours 22 hours 6 hours Machine Time 5 hours 15 hours Factory overhead - applied P429 ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The total cost of Job IABF is:

The processing of Salvation Company's manufacturing passes through two departments, Department 1 and
Department 2. Overhead is applied to jobs in Dept. 1 based on 150% of direct labor cost and P18 per machine
time in Dept. 2. The following information is available for Job IABF:
Department 1
Department 2
Direct materials
P1,590
P580
Direct labor cost
?
P48
Direct labor hours
22 hours
6 hours
Machine Time
5 hours
15 hours
Factory overhead - applied
P429
?
Transcribed Image Text:The processing of Salvation Company's manufacturing passes through two departments, Department 1 and Department 2. Overhead is applied to jobs in Dept. 1 based on 150% of direct labor cost and P18 per machine time in Dept. 2. The following information is available for Job IABF: Department 1 Department 2 Direct materials P1,590 P580 Direct labor cost ? P48 Direct labor hours 22 hours 6 hours Machine Time 5 hours 15 hours Factory overhead - applied P429 ?
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