The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600o.000 and will require 100,000 direct labor hours at an estimated cost of P2,500,000. The machine will run about 320.000 hours. What is the predetermined factory overhead rate based on direct labor cost? * O P7.8125 156.25% O 100.00% O P25.00 P62.50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Vinta Company estimates
its factory overhead for the
next period at P2,500,000. It is
estimated that 40,000 units
will be produced at a material
costs of P1,600,000 and will
require 100,000 direct labor
hours at an estimated cost of
P2,500,000. The machine will
run about 320,000 hours. What
is the predetermined factory
overhead rate based on direct
labor cost? *
P7.8125
156.25%
100.00%
O P25.00
O P62.50
Transcribed Image Text:The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600,000 and will require 100,000 direct labor hours at an estimated cost of P2,500,000. The machine will run about 320,000 hours. What is the predetermined factory overhead rate based on direct labor cost? * P7.8125 156.25% 100.00% O P25.00 O P62.50
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